Stocks rapidly becoming more 'expensive'

Here is the exactly opposite view. The graph below shows that S&P 500 stocks are becoming less expensive. In fact, they have never been that cheap in the last 18 years.

 

Op's chart is more up to date.

 

Another view... we can't tell whether stox are expensive or not.

Though recent years' earnings have been high, they're artificially inflated through money pump from the central banks and the labor savings from outsourcing.

Many are expecting a SHARP decline in earnings around the corner. If they are correct, what does that say about value?

Elephino...

 

I could not agree more with gnome.

Everybody understands and recognizes the principles of reversion to the mean. The real quesiton is: where is the mean?