Valuation and Sentiment, You Say Potato…

I had not seen the website Street Talk Live before, but it has some nice charts.  One was a long term chart of the AAII stock allocations.  Nut surprisingly, but sentiment correlates pretty highly with valuations.  But then again both of those are dominated by the P.  

Below I recreated the chart with valuations on the left axis (CAPE), and stock allocation on the right (AAII).