At a 10.8x P/E ratio on 12-month forward earnings expectations, the S&P 500 is trading well below its five-decade average of 16.4x, which tells you now that the stock market is cheap, but that it too has been re-priced for weaker growth ahead.
Wednesday, August 31, 2011
Rosenberg Daily - Markets Re-priced for Low Growth
The debt markets have become re-priced for a very weak economic scenario with the high-yield segment coming off its worst period since November 2008.
At a 10.8x P/E ratio on 12-month forward earnings expectations, the S&P 500 is trading well below its five-decade average of 16.4x, which tells you now that the stock market is cheap, but that it too has been re-priced for weaker growth ahead.
At a 10.8x P/E ratio on 12-month forward earnings expectations, the S&P 500 is trading well below its five-decade average of 16.4x, which tells you now that the stock market is cheap, but that it too has been re-priced for weaker growth ahead.
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