S&P 500 PE

Based on the 5 May 2019 close the S&P 500 PE on trailing operating earnings is 18.25.  That places it at the bottom of my fair value band that is based largely on  long term treasury bond yields.  We can each have out own theories, but it appears to be that the market is correcting on fears of what Trump’s trade war will have on earnings growth.

Figure one

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