Are we in a price/earnings sweet spot?

|By:, SA News Editor

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.

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