Both the pace of the stock market index moves, and the pace of the economic data changes have been staggering. This year we have seen a 30+% sell off, followed by a 20+% rally, and its only May. Meanwhile, in the middle of this historic rally, the economy set more history, by losing 30 million jobs in a little over a month. Needless to say, this is nothing this world has ever seen. The pace of the economic fallout is off the charts compared to what we have seen in previous recessions. As incredible as all that has been, the amount of action put in place by the fed has been just as impressive. The size of the balance sheet increase is jarring and again like nothing else we have seen in our history. So how does this get us to PE ratios? Well recently, we are hearing again and again that stocks are pricey or overbought, which might be the case when you simply look at a PE ratio. However, when you consider the Fed actions with the forward PE ratio, they are right