Schweizer

Assessing the Market's Current Valuation

You need to use forward 12-month as reported GAAP earnings as published by the S&P. They are now reported at $32.41 as of 2/12. Historice Bear Market lows are at a PE of 9.17, an average of all the Bear lows from 1930.

32.41 x 9.17 = 297 for the SP500. Now that is FAIR VALUE.