Convergence of asset prices and income they generate

You are paying $4 for a quart of milk while everyone around you is paying $2. It would seem natural that since you are paying too much, the price should drop and get close to the going rate.

Or, inflation. Each year, we all pay a bit more, and ultimately, we are paying closer to that $4 price.

(I am not agreeing or disagreeing with the author's premise. Just kindly explaining what I believe his theory to be.)

In the case of the overvalued stock, if the earnings rise with inflation, the dividends can rise as well, and eventually, the P/E and dividend are sensible.