Stocks Undervalued? / by urbanexus

Based on the graph posted at chartoftheday.com on May 21, 2009, stocks may not be undervalued.  The price/earnings ratio of the Standard & Poor's 500 have reached historically high levels as of May 2009.  The explanation would be that earnings are temporarily depressed by the recession.  Then again, earnings are earnings and the ratio is quite high.  

ECON - 2009-05-21 - S&P 500 PE Ratio (chartoftheday)