The lower-than-'07 peak is really all you need to know. Combined with the hallmark of secular bear markets, P/E compression, we are still forecasting 2014 before we finally get up a head of steam in "real" inflation-adjusted valuations. In the meantime it is a trading market. And remember that 2014 date is 2-5 years earlier than many prognosticators are opining.
Lifted in toto from The Big Picture:
Goldman Sach’s David Kostin created this chart comparing earnings peaks with market action.click for bigger chart
In addition to showing how overpriced the market was in 1999/2000, it suggests an SPX peak relative to current ( estimate of a near term peak) his earnings:
Goldman Sachs chart via ZeroHedge
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