The compressed P/E makes it a long term buy and hold at these prices, and by your own reasoning Intel is set to soar soon anyhow since politicians will not allow the economy to falter and go over the cliff, 2013 and beyond we will see a return to economic growth, taking cyclical stocks to highs not seen since the last upswing. The downside is of course inflation, then again stocks are good to own when inflation runs rampant. Economics isn't just looking at things as they are but also anticipating how economic policies enacted by central banks will shape the economy tomorrow.
Sentiment: Strong Buy