S&P forward P/E = 20.5 (vs. 15-16X trailing earnings)

Despite P/E contraction since July 2007, market is not cheap. Historical average P/E b/w 15-16 is based on 1-year trailing reported earnings, not on forward operating earnings. S&P 500's current P/E of 20.5 as of Apr 10 is at top of historical range based on forward earnings