Graph: Dow P/E Ratio Since 1929

Excellent graph and analysis...

"Bottom line: In my view, stock market value is driven primarily by earnings and dividends. However, based on about 100 years of stock market history, it looks like stock market prices are driven by the earnings multiples -- i.e. p/e ratios."

http://observationsandnotes.blogspot.com/2009/03/dow-price-to-earnings-ratios-since-1929.html

*On Normalized P/E Ratios
http://observationsandnotes.blogspot.com/2009/06/about-normalized-earnings-and-pe-ratios.html#links