The article shows that the market price-dividend ratio can predict market returns and dividend growth based on different economic conditions. By using a model with two regimes, researchers found that the predictability of dividend growth varies depending on the regime. When the economy is in one regime, the price-dividend ratio predicts market returns, and when it's in the other regime, it predicts dividend growth. The study also found that using certain state variables can better predict equity premium, size premium, value premium, consumption growth, and dividend growth compared to traditional predictive variables like the price-dividend ratio.