I read this article in 2016 and revisiting in Oct ending 2017. The current P/E of Nifty is 26.11. I like your reasoning of why an index P/E at certain level is expensive for a developing economy unlike most who do not attribute any reasons why expensive or why cheap! It doesn’t matter whether you get right or wrong but it does matter having a conscious thought process in investing. I’ve been thinking looking at most mid/small caps for last 2-3 months and they have run up almost double whatever stocks I want to consider. I’m not convinced with retail mutual fund flows like never before (thanks for financial advisors, print media who always advise to buy but never to sell irrespective of valuations) while the FII are net sellers. My thoughts are not about FII being net sellers but the way retailers are investing appears to be a sign of danger. Retailers always enter at the last stage of market rise. I again remind myself that it’s just my confirmation bias. I’ve been considering to stop my equity investments (I may be suffering from confirmation bias too) and follow a strict wait and watch approach until a good stocks comes down to an attractive level. I may lose out and I will get to know it only in future. Hopefully I’ll write here again the results.