real-time news and commentary for investors
Sunday, Sep 22
Are we in a price/earnings sweet spot?
- Citi Research’s Tobias Levkovich crunched 73 years worth of S&P 500 returns and found that investing in stocks when P/E ratios were in the 14-16x band provided annual returns of 14.6%.
- According to Reuters' This Week In Earnings, the forward four-quarter (Q2/13-Q1/14) P/E ratio for the S&P 500 is 14.5.
- Index ETFs: IVV, SPY, VOO, RWL, SFLA, SSO, UPRO, SDS, SPXU, SH, EPS, RSP, BXUB, BXUC, BXDB, DIA, DDM, UDOW, DXD, SDOW, DOG, QQQ, QQEW, TQQQ, QID, SQQQ, PSQ, QLD, QQQE