David McMillan

S&P 500 Sector P/E Ratios Rise

Good comments Zagreb on how P/E ratios can be very revealing, especially in times like this. Historically, only one bull market rally has been sustained when P/E ratios were above 11. As we didn't come close to this level even last year we appear to be right in the midst of a secular bear market (which can last up to 25yrs). We will see if the next drop takes us down to this level where the corresponding bounce can be a solid one.