Most analysts think US market overvalued

Markets were mixed on Tuesday.

The Nikkei 225 jumped 1.1 percent, reversing the previous day's 1 percent decline, but the STOXX Europe 600 rose just 0.1 percent and the S&P 500 fell less than 0.1 percent.

The latest Bank of America Merrill Lynch Fund Manager Survey showed that a net 46 percent of respondents considered stocks overvalued, the biggest gap ever recorded in the survey.

At the same time, investors have lowered their expectations for corporate earnings, with a net 33 percent saying profits will improve over the next 12 months, down 25 percentage points from 2017.

However, long-time bull David Tepper, head of Appaloosa Management, does not seem to agree.

“Any comparisons to past overheated markets are ridiculous,” he told CNBC. “I'm not saying stocks are screaming cheap, but you're nowhere near an overheated market.”