I think it's one of the most under-appreciated charts. Robert Shiller had this chart about 7 years ago and used it to highlight the insanity of Dotcom Mania.
Sorry for the short posts here guys, just busy with summer, packing it in before busy season starts and then its winter.
If you can find it... check out Art Laffer's paper on adjusting S&P 500 P/Es for interest rates, changes in GAAP and marginal tax rates (to name three of the five). It is interesting how he postulates that P/Es are not as overpriced as one would think when you factor those two elements into the equation.
ReplyDelete"Five Factors Distorting P/E Comparisons Over Time" - Art Laffer and Marc Miles
Hope you have the time to look it up.. fascinating food for thought