Stocks are overvalued by 50%, writes Andrew Smithers, kept afloat for the moment by corporate...

|By:, SA News Editor

Stocks are overvalued by 50%, writes Andrew Smithers, kept afloat for the moment by corporate buybacks. Smithers - who sat out the 90s bull market, but had the fortunate timing of putting his bearish ideas in permanent print in March 2000 - says cash on corporate balance sheets is the mirror of the fiscal deficit. When the deficit gets reined in (2013?), so will corporate cash, and so will stock prices.