Multiples and Markets: What’s in the Price?

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,



  1. misterz12 says:

    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….