"Interest rates are used to price risk, and so in the current environment, the risk-pricing mechanism is broken." This is the money quote.
Just verbal speculation of course, but it remains hard to swallow that Italy borrowing for 10 years at 1.61% or Japan at 0.27% accurately reflects the full long-term risk of the single-point-of-failure policy of central bank buying.
that's the spu's total pe ratio, and it's about half what it was in 2000.
Median of S&P500 price/sales (not quite the same as median of price/earnings of course): http://mebfaber.com/2015/03/13/stocks-are-the-most-expensive...
Median of price/earnings for the broad NYSE universe: http://www.hussmanfunds.com/wmc/wmc150112.htm
I don't think it's controversial to state that high valuations in equities are more broadly carried. (Hussman's weekly column is an interesting source of opinions on where these broad valuation measures stand at any given time.)
Obviously, that doesn't automatically imply that any sort of deep loss is imminent. I believe it does say something about what you can reasonably expect in terms of long term total returns.