An Optimist’s View of Valuations

By on November 9, 2010

Eddy Elfenbein at Crossing Wall Street has a chart at his site showing earnings leading the S&P 500 to 1,508 in 14 months. Elfenbein points out that the historical average PE ratio for stocks has been around 16 and with current forecasts for S&P 500 earnings next year of around $94, it isn’t a stretch to see stocks gaining substantial ground from here.

Source: Crossing Wall Street
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