Weis is fear mongering using that chart and pulling the wool over our eyes. Economic growth is exponential and to plot a trend line you need to plot it on a log-linear plot, and adjust for inflation. It will not look nerely so scary. At somewhere around Dow 5000-6000 we start to hit long term P/E bottoms of 7-10, and things should not drop much below that.
That is not to say that the SM has not been wildly overpriced for the past 20 years.
