This is one of my favorite charts, although I look at it infrequently because it’s a little like watching grass grow. Instead just showing a graph of earnings, it puts earnings in a different context by presenting a set of bands that show where the S&P 500 Index would be if its P/E was 20 (red line), 15 (blue line), or 10 (green line). And the position of the S&P 500 within those value bands tells us where the index is in relation to being overvalued (red) or undervalued (green). (This chart is not “live.”)