Two competing theories going on in my mind.
1. The market is overvalued because of trillions of retirement dollars hitting the market over the past 40 years and the younger generations not having the purchasing power to continue to inflate that bubble.
2. The market derives its value from future cash flows and profits. These future cash flows generated by the assets of these companies will be priced in "future dollars" as the company will naturally increase prices to keep up with inflation and maintain profitability. Additionally, a higher and higher percentage of sales are coming from foreign countries to offset the craptastic business prospects here in the US, providing an additional hedge against inflation.
Discuss and resolve!