The Stock Market Is Incredibly Expensive. What History Says Comes Next for the S&P 500.

The stock market isn’t just expensive, it is extremely pricey. And yet history indicates it can post impressive gains from the current level.

Whether stocks’ valuation is crazily high has a lot to do with the level of interest rates. With the index trading at 18 times earnings, an investor can expect about $5.50 in annual per-share profit for every $100 they invest in it. Yet history shows that when the equity risk premium is as low as it is now, stocks have tended to rise by double digits over the following year. When the S&P 500’s equity risk premium is between zero and 1%, its average move for the following year is just over a 12% gain, according to RBC.

Singapore Singapore Latest News, Singapore Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock Market News Today: S&P 500 on Winning Streak; Disney Stock in FocusLive coverage of stocks, financial and economic news, including the S&P 500, Dow and Nasdaq Composite.
Source: WSJ - 🏆 98. / 63 Read more »

Stock Market News Today: S&P 500 on Winning Streak; Disney Stock in FocusLive coverage of stocks, financial and economic news, including the S&P 500, Dow and Nasdaq Composite.
Source: WSJ - 🏆 98. / 63 Read more »

Stock Market Today: S&P 500 Eyes 9-Day Winning Streak; Disney Stock in FocusLive updates on stocks and financial news, including the S&P 500, Dow and Nasdaq Composite.
Source: WSJ - 🏆 98. / 63 Read more »

Stock Market News - Investing.comGet the stock market news that is impacting trading in the US and around the world. Investing.com's stock market news team reports on before and after hours trading, earnings reports, company news and any news impacting today's major stock markets.
Source: Investingcom - 🏆 450. / 53 Read more »