Elliott Wave tells us that markets trade in a five-wave pattern consisting of three expansions and two contractions. We bottomed in 2009, and may now be in the final advance.
The market may definitely look expensive on the back of historical figures like PE Ratios/ Book Values/Dividend Yield etc.
The eight-plus-year equity bull market rally has reached its final leg, according to Morgan Stanley’s 2018 equity outlook cited by Business Insider.
From Elliot Wave perspective, it looks like the current leg of rally from December 2016, in a very long-term bull market, is wave three, should top out somewhere between March to June of 2018 thereby paving the way for multi-month correction in the form of wave 4 which when culminates pave the way for final leg of bull market.