The graph assumes familiarity with Dr Schiller’s work. See post #22 if you wish to learn more about it.
Note that currently 2 factors are boosting corporate earnings.
1. Drastic reduction in regulations.
2. Biggest monetary stimulus in history in form of huge tax cuts especially corporate taxes.
Fly in the ointment is zero spending cuts, which means piling on more national debt. We are already paying $1 Billion every day (x 365 for year) in interest to service the national debt.
There are no bigly other stimuli possible to rev up the economy. Tariffs going to zero on both sides of trade would be the stimulus. But that will take some time and perseverance by law makers.
Finally the Schiller PE is now higher than before the 1929 crash. Invest with caution.
If I followed his advice the last two years I would have missed a big market move up!