Lost in the shuffle of this surge higher for the market is the quickly expanding P/E ratio of the S&P 500. As shown below, the S&P's trailing 12-month P/E is currently at 15.25, and it will increase even more once the market opens this morning. Valuations can certainly expand during rallies, but it's just something to be aware of here with all the news focused on the push to all-time highs.
Below are one-year charts of the trailing 12-month P/E ratios for the ten S&P 500 sectors....MORE
Friday, March 8, 2013
"P/E Ratios Creeping Higher"
From Bespoke Investment Group:
