Republished from Dr. Ed Yardeni’s blog: “Dr. Ed’s Blog”
So what is the correct P/E for the S&P 500? Our “Blue Angels” analysis of earnings momentum and valuation shows that 13 has been an unlucky number for the P/E for the past three years. The rallies of 2010 and 2011 were followed by nasty corrections after the P/E rose to 13. On September 14, the P/E was back just above this jinxed level. Now it is just a bit below …