.SPX YTD mountain S & P 500, YTD The S & P 500 is also down 10% over the past two years and at a level first reached 30 months ago, with U.S. GDP now 18% larger than it was then and annualized earnings 10% higher.
This places the S & P 500 at around 17 times forward earnings, roughly the past decade's average.
The equal-weight S & P is near a 14 multiple and the equal-weight consumer discretionary sector is under 13, near the 2022 low P/E.
Bank of America equity and quantitative strategist Savita Subramanian points out that "Consensus long-term growth expectations for S & P 500 earnings have dropped to record lows, a rather powerful contrary indicator."
Yes, market breadth is lousy, the equal-weight S & P 500 less than 5% above the October 2022 low, but this is also how markets look when they're getting "sold out."
Persons:
it's, Goldman Sachs, It's, Savita Subramanian, Stocks
Organizations:
Federal Reserve, U.S, Bank of America
Locations:
Israel, Iraq