The recent rally to new highs for the S&P 500 has caused the index’s valuation to jump as well. In fact, the S&P’s trailing 12-month P/E ratio has just eclipsed 20 for the first time since the early days of the current bull market. The last time the index’s trailing P/E was above 20 was on December 30th, 2009. Below is a chart showing this valuation reading since April 2009:
Below we extend the time frame back much further to 1990. We also include the S&P’s price in the chart as well.
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must! • DiscoverGold
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