After the 5 Day Market Beat-Down its Looking Cheap

I was reading an article on how the market is off during the last 5 days and I came across this article.

The S&P 500 has tumbled 36 percent from its record a year ago. Based on estimated profit, the S&P 500's price-to-earnings ratio is 11.9.

``On very conservative earnings expectations for the next 12 months this market at minimum is starting to look reasonably valued,'' Leo Grohowski, chief investment officer for the wealth management unit of Bank of New York Mellon Corp., told Bloomberg Television. The unit manages $162 billion. ``Times when it feels almost irresponsible to shore up equities, they tend to be good buying opportunities historically.''

You have to say that a PE of 11.9 is pretty historically cheap. The last time it was in this level was 3/31/1989 when it was at 288 or so. Currently it stands at 996.23. So that is a nice couple of hundred percentage points between now and then. I just wonder if we will see 800 (the Dot.com bust era) again before too long.