I consider forward PE pretty meaningless. Forward PE is based on average Wall Street earnings estimate. Historically Wall Street earnings are adjusted downward over the course of the year.
My point on interest rates is, the excuse to continue to buy the market which by most analyst concede is on the high side is "the Fed has our back." Now the Wall Street hacks claim a rise in rates won't hurt the market because "the economy is gaining traction and earnings will improve." Well after 6 years of zero interest rates and a Fed Balance sheet that expanded to $4.4 trillion we have at best a sub-par 2% GDP economy. Sorry you cannot have it both ways unless you are a fool and believe Fairy God Mother Janet Yellen will continue to deliver fairy dust to boost the bloated US Stock Market.
If you continue to believe that I am just a "Debbie Downer, " or an out of touch 64 year old; which may be true. Let me refer you to an article in the current issue of Barron's I don't have the title of the article. A summary, how Wall Street uses non-GAAP earnings to value company earnings rather than GAAP (generally accepted accounting principals). Most of the offenders are in the technology sector where they subtract stock based compensation from the GAAP number. I looked at one company and the difference was a quarterly .08 share gain non-GAAP to -.02 GAAP. Furthermore. the GAAP loss was higher in the previous year's quarter, but the non-GAAP number was a profit. This is BS and you, as an investor should be alarmed.
It is your choice to believe that all is well and in the words of Bob Marley "don't worry be happy," or question what you are being fed.
If you believe all is well think again. Several Chinese markets are down 5% Friday, July 3rd. It does not matter if the Greek vote yes or no, the country is bankrupt, and all that debt is on EU country and the IMF balance sheets. Puerto Rico, Chicago are bankrupt. And California, alone one of the largest economies in the world is well a basket case.
In the end it is admirable to be optimistic but it is not admirable to be a fool. You cannot issue debt to infinity and not expect severe problems. Sorry but many of you need to wake up.