The image of the DOW here tells me whether it is overvalued. Price earnings multiples show that the Dow currently is hovering around 12x earnings. In other words to buy all the Dow companies you would pay 12x their annual earnings. Is that a cheap price to pay? If it is, then we should because the price will go up. How do we know? Well it is not unusual to reach 15x earnings and rare to go below 12x. That’s one reason to assume cheapness. But what if earnings drop? It doesn’t seem as if the US market is expecting this. And why should it when China imports a Greece every 9 months and creates through growth a new Italy every 2 years.