Multiples and Markets: What’s in the Price?

By Paul Kedrosky · August 14, 2011 · ·

A handy price/multiple graphic of the S&P 500. In the spirit of full disclosure, I’m deep in the camp that says markets are still over-optimistic about this year’s and next year’s earnings.

MS Year end spx

Morgan Stanley via Zero Hedge,

 

Related posts:

  1. Once and Future S&P 500 P/E Multiples
  2. Morgan Stanley Started Down Bank Path a While Ago?
  3. Fun with Sectoral Multiples
  4. Yahoo: T. Rowe Price Likes Microsoft’s Price
  5. Morgan Stanley: 9/11 Ate My Emails

Comments

  1. misterz12 says:
    August 14, 2011 at 7:33 am

    The 10 Year Treasury is at 2% and TIPS offer negative real yields. What do you consider a fair early/mid/late cycle multiple for the S&P in this environment? 12 on mid cycle would be an 8% earnings yield….