S&P 500's Valuation Hits 15-Year High; Should You Be Concerned?

The combination of an extended S&P 500 forward valuation and charts that are somewhat extended could have some surprising implications. Should some consolidation/retracement of the recent rally occur, it may be more notable than the crowd expects.

Forward 12-month earnings estimates for the S&P 500 from Bloomberg of $137.37 per share leave a 5.56% forward earnings yield on an 18.6x forward P/E multiple, a new 15-year high. Meanwhile, several of the charts are extended above their support levels and 50-day moving averages. ...235 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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