Bill Fleckenstein says that stock valuations have risen to absurd levels on the back of low interest rates. But though he remains staunchly bearish on equities, he still believes that it's not yet time to get short.
Valuations on certain tech stocks are "ridiculous—it's just plain ridiculous," Fleckenstein said on Tuesday's episode of "Futures Now." "But that doesn't really matter. Overvaluation, no matter how gargantuan, does not make stocks go down."
"When you get to a place where groups of securities can get wildly overvalued, usually that continues until they exhaust themselves, or until some monetary phenomenon upsets the apple cart," the noted short seller continued.
"But there can be no debate about absurd valuations. And you can't use zero percent interest rates as a justification, because the only reason rates are at zero percent is because of the same Fed that has caused the stock market to be infected with lunacy again."