Are US stocks overvalued?

Investors remain divided over whether the US stock market is expensive, based on comments made over the past week.

Berkshire Hathaway chairman and CEO Warren Buffett told CNBC that “valuations make sense with interest rates where they are”.

GW&K Investment Management portfolio manager Aaron Clark said that “valuations are fine, given where we are in terms of inflation”.

Ameriprise Financial's chief market strategist David Joy said: “Valuations are elevated, but you can justify them.”

PNC Asset Management's global chief investment strategist Bill Stone said that “stocks are not wildly overvalued, certainly relative to interest rates”.

However, Gartman Letter editor and publisher Dennis Gartman told CNBC that the stock market is “egregiously overpriced”.

And today, John Hussman, president of Hussman Investment Trust, wrote in an article that “the U.S. equity market is now at the most offensive level of overvaluation in history” and that “it is utterly incorrect” to say that market valuations are justified by low interest rates.