"Bears Shouldn't Do Math" by Alan Reynolds (Cato Institute: Commentary)

"Bears Shouldn't Do Math" by Alan Reynolds (Cato Institute: Commentary): "But stock valuations are not just a matter of opinion, gyrating unpredictably between waves of optimism and pessimism. On the contrary, the graph shows that P/E ratios mainly depend on interest rates. It makes that point by simply turning the P/E ratio upside down, resulting in an earnings-price ratio or 'earnings yield.'"