Probably still more room to drop on equity markets (the impeding US election could be one trigger). As an asset class equities have been very overpriced (similarly the property asset class also).
It's still VERY hard to find bargains for individual blue chip stocks at current P/E levels (amongst other inidicators). How can you fcst future earnings in this climate, therefore how can you determine that the current price is a bargain (talking investment and dividend returns here not speculative gambling) ? Very risky with common stock less so with preferential stock but unlike Mr Buffett it is very difficult to obtain the latter. I recall reading that his US3B purchase of GE stock has options to purchase future preferential stock at very discounted rates. Now that's leverage !