All listen to wise man Robert Shiller of Yale who has correctly predicted—well in advance—the dot.com and housing bubbles. He says stocks are still overvalued, trading at 20 times annual earnings, compared to their long-term average of 16 times. And profits are not on the upswing, meaning if prices stay the same those multiples will increase, making stocks inherently more expensive.

Here’s our backhanded compliment Quote of the Day:

“I think the global economy will stay, on balance, not so bad,” (money manager Jeremy Grantham) says. “There is no reason for people to become as pessimistic as they did even in Japan, and certainly not as pessimistic as in the Depression.”

Soft hard-good orders

In economic news, durable-goods orders dropped last month by 1.7 percent after falling 4.7 percent in January. A 13 percent fall in machinery orders was the biggest since records began in 1992.