From reading Greenblatt's books and interviews over the years, I think one of the main points of his formula approach is to follow the data even in cases where there are concerns regarding individual equities in terms of the sustainability of earnings, etc. I read the G&D interview to basically extend that philosophy to the market overall ... so while earnings seem to be at unsustainable levels as a percentage of GDP and as a percentage of sales, perhaps this is part of the "wall of worry" that could propel stocks higher over the next few years. I may be misinterpreting the formula approach or the G&D interview entirely but that's how I read it.
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