[bruxis]

Semantics for sure, but while value is perhaps represented by currency by what people are willing to pay and sell for. Others have different metrics for determining value -- "value investors", for example, measure the "value" of a security quite differently than it's current price.

But to your point, yes, the combination of currency inflation (as seen through the securities market due to liquidity injection, and perhaps not yet seen elsewhere) and changes in PE ratios is roughly what I'm referring to. As earnings drop, if prices remain as high as they are due to this inflation, the ratios should see a spike, not unlike the one seen in the chart linked for 2009.