FUNDAMENTALS. I claim no credit for calling the Great Devaluation back in May.

I'm one of those curmudgeons who argues that fifteen to twenty times earnings is evolutionarily stable. The figure suggests some irrational exuberance left in the system.

If I had any special knowledge about when the exuberance would go away, which I get the impression is the popular view of what an economist knows, I would be a very rich man today. I've located an article that suggests there's more mean reversion to go.

Dow Jones Industrial Average -- 1900 to 2003 (log scale),
with best fit exponential growth trend line, showing trend value of 5800 in 2010.
Generational Dynamics image.

Although I am not operating an investment service, I will note that past pessimism is not a guarantee of future accuracy.