Valuation Risk = 3% Inflation

June 14, 2017 BY James Paulsen

Stock investors are understandably concerned about the valuation of the U.S. stock market. On trailing 12-month earnings per share, before extraordinary items (as published by Bloomberg), the S&P 500 stock price index currently trades at about a 21.5x price-earnings (PE) multiple. Based on monthly observations since 1950, the current PE is about 25% above its average of 16x, and is higher than 88% of the monthly PE multiples since 1950.


Are you interested in Paulsen's Perspective?

Please contact us if you would like to more information about getting access to Jim's weekly research notes.

to your Account