The current value of the global stock markets equals to about 133% of global GDP versus a 60 years average of 82%. Only in years 2000 and 2007 was the market valuation higher. And we know what happened to financial markets the following year!
Source: WSJ
Note: In the SiAlpha Multi-strategy portfolio we hold over 20% cash and VIX options to hedge portfolio. We also are evaluating additional short positions.