The Dow is trading at about 18-1 P/E earnings. By any sound fundamentals, it should be at about 7/1. It’s inflated, and has been greatly inflated since the Clinton Administration flooded the marketplace with dollars, thus creating the bubbles in real estate, stocks, and the whole Dot.com bs. So it has to come back to equilibrium. Screw the derivatives, let them all unravel. And when the dust settles and everyone regroups, we’ll be back where we should be and stop wasting tons of money propping up a phony system.
When I had economics in college in the early 50s anything over 7-1 PE ratio was considered speculation.