Subject: Re: Jim Grant on Berkshire/Cash/Valuations
"But then, shouldn't you also expect that mean reversion over 5-10 years, also, taking the S&P's 3.5% earnings yield down to a total return of 1.5%? And leading to an even higher allocation to bonds?"

If the stock market P/E falls to 17 over 10 years, that will knock more than 2 percentage points off the return. It will knock about 6.7% percentage points off the annualized return. Ouch.