Garzarelli: Stocks are 28% undervalued

On CNBC this morning: Elaine Garzarelli says that unlike 1987, when the market was 35% overvalued, things are different now. The woman who called Black Monday says that by her 14 indicators, the current market is 28% undervalued.

Rather shocking. There's been so much talk about how the market is due for a crash. I'm leery, seeing the bulk of my portfolio in the red this morning. (Nasdaq down 16 points, Dow Jones down 120 points, S&P 500 down 11 points.) This is as broad in the red as I've seen my favorite stocks in some time. But Garzarelli is plainly bullish. "This is a secular bull market. Profits are at an all-time high relative to GDP. They continue, they're going to come down a little bit, but they continue to stay at a high level. Stock prices are here (lower). They haven't caught up yet."

Who's going to argue with her?