The truth is the main drivers for the price of gold are the level and direction of real interest rates and the intrinsic value of the dollar.

FORBES: Gold's Allure Tied to Interest Rates

The bottom line: PE should be seen in relation to the level and the direction of interest rates rather than in relation to its historical level.

FORBES: Is a Low PE a False Buying Signal for US Stocks?

In the other direction the high level of bullishness and complacency the last couple of months has had us warning you of the high risk of a market correction, and watching our indicators for a potential sell signal (which was recently triggered within a few days of the top).

FORBES: Investor Sentiment Counts For Little Between The Extremes