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...Looking at a 20-year chart of the price/earnings valuations of the S&P 500 and its small cap sibling the S&P 600, it seems possible that this is what has happened to small stocks: Small caps (dark blue...
...However a stream of robust economic data and the falling levels of inflation has quelled such fears....
...Thus only a fraction of overall AUM is deployed in strategies that have a direct impact on the VIX® index (e.g. 1-month over/underwriting strategies on the S&P 500 index)....
...If you take the Magnificent 7 out of the S&P 500, its multiple moves from 22 to 19. The S&P 350 is at 14....
...The forward P/E of the Mag 7 is 31. The rest of the S&P 500, excluding the Mag 7 and four stocks with negative expected earnings, has a forward P/E of 19....
...In contrast, the S&P 500’s price-to-book ratio is close to the record 5 times it touched in 2021 and 2000 (the Nasdaq’s P/B ratio is close to 7.5 times)....
...In our view, this probably explains their strong re-rating (forward P/E of 27.2x), and why they are trading at a 110% premium to the STOXX 600 (13.0x)” wrote....
...The S&P 489 has a weighted average P/E of 24, cheaper than the whole index, but not by much....
...On a forward P/E basis, the S&P 500’s 2021 (harmonic) average was 23, versus an average of 22 in the past four months and 18 in the past three decades....
...High multiples on which they trade have pushed the broader S&P 500 Shiller price-to-earnings ratio, aka the cyclically adjusted p/e ratio (CAPE), up from less than 30 times in late 2022 to 34 times....
...For a stock that is expected to increase earnings below the S&P 500’s average pace this year and next, that’s still a lot....
...Japanese stocks traded on a P/E of 67x in 1990. The Nifty 50 traded on a P/E of 34x in 1973....
...30x P/E multiple is sustainable given rest of the index trades at 18x,” write Goldman’s David Kostin and team....
...By September last year, all three had covered more than half of their respective 2024 production at prices above $3/mn Btu, according to S&P Global Market Intelligence....
...I would not want to bet that the Mag 7 would revert to a growth rate of profits near the S&P 500 average (mid-high single digits) in the next five years....
...Stocks with low P/E ratios relative to their expected growth rates are rare....
...University California, San Diego, for example, returned a leading 11 per cent in fiscal 2023 by virtue of its nearly one-third allocation to the S&P 500....
...The blue-chip S&P 500 was down 0.1 per cent in mid-afternoon trading, while the tech-heavy Nasdaq Composite had fallen 0.4 per cent....
...In the median experience since 1984, the S&P 500 forward P/E has declined by 2% in the 12 months preceding Election Day....
...Earlier this week, rating agencies S&P Global and Moody’s put Equinox on watch for downgrades deeper into junk territory, fearing that it could face a restructuring if it were unable to refinance the loans...
...The FTSE 100 trades on a 11.6x P/E. This valuation puts the UK on the 38th percentile vs. its own history (since 2006)....
...P 500 remains roughly unchanged, the largest 10 stocks have continued to increase (now at 33.1% weight) at the expense of the next 40 (down to 35.8%) and the broader index, Cap-weighted S&P 500 trounced...
...In 2021, S&P started publishing numbered scores from 1 to 5 for the three E, S and G categories as part of corporate credit scores....
...Today, about 70 per cent of companies in the S&P 500 stocks index pay a dividend, but generally a slender one....
...TCI made $12.9bn for investors and ended last year up 33 per cent, ahead of the S&P 500 index’s 24 per cent rise....
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