The S&P 500 and Its Earnings

Here’s a look at the S&P 500 along with its earnings. The S&P 500 is in black and it follows the left scale. The earnings line is in yellow and it follows the right scale. The two lines are scaled at a ratio of 16-to-1. That means that whenever the lines cross, the market’s P/E Ratio is 16.

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Posted by on November 18th, 2014 at 12:04 pm


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