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This chart shows Bloomberg's calculation of the S&P 500's PE ratio using 1-yr forward consensus earnings estimates. By this measure, the market today is only a shade less pessimistic about the future than it was towards the end of 2008, when a multi-year global recession/depression was widely expected.

What this tells me is that if you are still bearish about the stock market's prospects, then you must also believe that the future is going to be even worse than a global recession/depression. If the global economy ends up experiencing anything less than what is almost a nightmare scenario, then stocks are selling for bargain-basement prices.

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