Dow Is Too High, and Too Low at the Same Time

If interest rates rise or corporate profits drop, the Dow Jones industrial Index will fall.  I think this inevitable even though I expect everything to go "sideways" this year. 

But yet at the same time the Dow is too low because of inflation over the last few decades. The Dow's purchasing power has declined substantially. Rather than try to reproduce someone else's work, I thought I would link to Charles Hugh Smith's blog where this point is made in charts far better than I could.