For example, S&P earnings end 2011 of $92 x 14 PE ratio = 1288. This falls in the range the bottom half of the analysts are figuring for 2011, whereas the aggressive players are talking 1400 to 1550. Either earnings would need to explode towards $100+ or multiple expansion would be required. For a relatively slow growth country, heavily based on financial earnings, it is hard to make that argument ....but in a low interest rate environment some will claim 15-16x PE ratios are fair.
As always take these with a grain of salt, coming off record profits in 2007 what this sort of chart predicted for 2008 would be laughable in retrospect.
hat tip Bespoke.