A few weeks ago, I wrote a newsletter outlining the current mathematical challenge facing US stocks. To summarize: US stocks are unfavorably priced relative to history, US stocks are unfavorably priced relative to projected future earnings, and US stocks are unfavorably priced relative to bonds (& other fixed income securities). Since that writing, stocks had…
Author: Wyatt
At around 4,516 (today the S&P closed at 4,259) the S&P 500 is priced at 18.86x forward earnings. As seen below, the 20-year average is 16.77x, and 20.07x would represent a full standard deviation above average. The earnings per share forecast is about $240 for the S&P in 2024 as seen in the chart below….