FYI: For all the hand wringing about trade wars and a potential recession, U.S. stocks don’t reflect that worry. The S&P 500 is only a few percentage points from its all-time highs, and U.S. stock market valuations are close to historical averages.
The 12-month trailing price-to-earnings ratio (P/E) for the S&P 500 is currently around 21.4, close to the 10-year average of 21.6.
The P/E ratio measures the price of a stock divided by its earnings per share (in the case of the S&P 500, the “price” is the index level). It’s a measure of how much investors are willing to pay for each dollar of corporate earnings. The higher the ratio, the more “expensive” stocks are (and vice versa).
Regards,
Ted
https://www.etf.com/sections/features-and-news/etfs-lowest-valuations?nopaging=1
