Do Not Ask Me For Advice

The other day someone at school asked me "is this a good time to buy stocks?" My reply was "No" . I continued with "I think cash will be king".
I think markets tend to overshoot. The stock market is still overpriced. I look at Price Earning Ratios and they are still higher than back in 1974. Another reason for my pessimism is that changing prices reinforce previous changes not only on the upturn but also on the downturn. Finally my experience of living in Japan and witnessing their bubble bursting makes me a pessimist.
The following interviews are with Nouriel Roubini who has been warning about this collapse for the past few years.