Hi Arco,
Well, that looks like about a 30% decline in prices still required if I read that right? (Making the radical assumption that earnings aren't going to increase by 40%...)
But then, after that, P/E's might not go up on the back of rising prices, but rather could simply rise due to a decline in earnings? Bullish in terms of P/E but not necessarily in terms of equities. Though I guess at least it would improve the odds of making money on stocks if the prices simply held steady!
(Need to put it next to a similar scale chart of the Dow maybe to see how strong the link has been in the past?)