Capitalization-Weighted Indexes

Jamie Sidey writes about Capitalization-weighted indexes and how they will always underperform equal weighted indexes. The gist of the article that he links to is that almost all stocks will either be overvalued or undervalued at any point in time and a traditional index fund will grow with those overvalued companies so it will have more of its money invested in the overvalued companies. That makes complete sense, but where the hell do I find these special funds? Despite their poor performance compared to a hypothetical better fund I would still prefer to put my money in a traditional index fund than a actively managed fund since 85% of actively managed funds don't beat the stock market.

One thing I've been thinking about for a while is that so many people have their retirement money invested in an S&P 500 index fund (Vanguard's alone has over 100 billion in assets) that all of the stocks in the S&P 500 might be overvalued. What's going to happen when the baby boomers start retiring, is the S&P 500 going to crash?