Despite rally this year, the S&P500 is still testing a multi-decade low P/E ratio on forward 12 month earnings

The S&P 500 has recovered 105% from the Great Recession low of 666 in March 2009.  It is still cheap when examined on basis of the forward 12 month (“FTM”) P/E ratio.  We are still testing the low FTM P/E of the lows in 2009.  We have to go back to Dec 1994 to find a time of a similarly low FTM P/E ratio.  The S&P500 gained 34% in the ensuing 12 months.  The NASDAQ rose 39.9%.  Jeb Terry, Sr. July 1, 2012

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