During bear markets, values drop precisely because there are more sellers than buyers. With bloated inventories, prices drop. Whether it's pork bellies or computer chips, lowered demand and swollen inventories suppress prices. Trying to fix stock prices to dividend rates or, even more ludicrous, to the overall growth rate in the economy is like correlating real estate to the price of tea in China. No matter how you crunch numbers, they're not related.
Stock prices escalate when enough investors start buying stocks again.
As long as investors remain gun-shy, prices remain depressed. Today's meltdown in tech stocks represents a needed correction to begin yet another natural cycle of growth and evolution. Suggesting that bulls are extinct totally ignores the past hundred years, proving that battered markets recover and eventually set new records. As the Fed continues to slash rates, investors will once again find stocks attractive investments. Lowering interest rates and loosening credit enable businesses to make capital investments for future growth.