Historical S&P PE Ratio from 1880 to today

[newwurldmn]

Quote from Specterx:

?? The graph clearly shows the shiller PE topping out near 45 at the 2000 peak, then eventually touching 15 at the march 09 low.

Durable, long term market bottoms are formed at more like 7-10 rather than 15...

I meant the decade of the 2000's. Unfortunately the graph doesn't provide enough detail to confirm whether that bottom was in 2002 or 2009. In either case, I find it hard to believe that the 10 year average PE was 15 at the bottom. 7-10 sounds more reasonable. In 2009, when we hit the bottom, SPX earnings were like 70 dollars/share and that was the recessionary earnings. The 10 year average would have been higher than that.

 

[Wallace]

under 10:
http://bespokeinvest.typepad.com/bespoke/2009/08/sp-500-pe-ratio-nearly-doubles.html

 

[Visaria]

Quote from Algo_Design_Kid:

Sp500 @ 408 with 0% interest rates?

I really doubt it brother.

Exactly, interest rates play a big role. When was the last period rates were at or near zero?