Chart of The Day – June 4, 2020

By: Chris Wenner in Charts 06/04/2020

Here’s a chart of the Forward PE on the S&P 500 going back to 1990.  Recently, this key measurement of how expensive equities are has been going vertical.  Using this ratio alone, at nearly 25x, the S&P 500 is more expensive now vs. any other time (since 1990) except 1998-2000 when this ratio hit 26x.

By no means will this dictate short-term price movements – but it very well may keep a lid on them in the medium-term unless earnings and guidance pick up in a meaningful way.

CW

 

By: Chris Wenner

Managing Director

Jonathan Molchan

Wennco's innovative strategies and robust OCIO capabilities are designed for RIAs, Family Offices, and high-net-worth individuals.

Related Literature

Follow Us