S&P500 level and PE ratio
But that's not at all true for credit. In spite of the massive rally we've experienced, investment grade corporate credit spreads are around 390 bp vs. pre-crisis levels of just above 100 bp. Equities are now looking completely overpriced relative to credit.
JPMorgan blended corporate investment grade spread
Update: some are questioning Bloomberg's estimated PE number. Here is an estimate from S&P as a comparison (consistent with Bloomberg's estimate of 16) - see page -2: