The Fed has certainly played its part by maintaining interests near zero for an extended period and then intiating QE programs which expanded money supply, while supressing treasury yields. Tiny yields on treasuries have played a major role, few investors are willing to tie up money considering the paltry rates, unless they firmly believe in a long term deflationary environment. It seems that the Fed's intent to eliminate that possiblility has been successful in driving money flow back into the equity market. That along with a turnaround in the economy.

The question is whether the Fed will have the resolve to reverse course as undesirable inflation emerges, particularly if the unemployment rate remains high. At any rate, the historically high PE10 is unsustainable over time, although in the shorter term I expect that the markets will continue to rise as investors become less timid and turn more and more bullish. I am in the camp that we are still in a throws of a secular bear market, merely experiencing a huge bear market rally. Don't misinterpret, I am fully invested in equities, I have been since shortly after 9-11, however by this time next year I doubt if that will be the case.