[BenLurkin]

I think what he is saying is that equities (stocks) are fully valued now. Putting more money into the stock market will drive stock prices up -- but the stock values will be unrealistic in relation to each company's earnings and assets.

As it is, much of the S&P 500 is trading at or near 52 week highs and with correspondingly high Price/Earning and Price/Book ratios.

[Ditto]

I think what he is saying is that equities (stocks) are fully valued now.

I'm not sure what he is saying, but I don't think that is it. Sounds more bond than stock related.

I just want to know what it means regarding my 401k allocations... should I get out of bonds and fixed incomes or load up on them now?

[OneTimeLurker]

He is talking about private equity, not stocks. The idea is that too much money will be chasing too few opportunities in private equity thus driving the returns too low to be commensurate with risk and driving money into investments that should have never been made.