It just measures valuation between two major asset classes. Paper assets are so much in vogue and hard assets are so badly neglected that major Wall Street firms don't even include hard assets in their asset allocation recommendations for client portfolios, as if the asset class doesn't exist. There is also very little investor demand for hard assets. This gives the wise investor an opportunity. Like it or not, value is still the most important measuring stick on Wall Street.
Investors constantly confuse the price per share with the value of a stock.
This isn't true. The same discipline can be applied to the market. It is amazing how rythmic the cycle is. What is even more interesting is the amount of time between each low - about 30 years. The high topped out about every 30 to 35 years.