S&P 500 Valuation and Equity Risk Premium

S&P 500 Valuation and Equity Risk Premium This chart shows that the equity risk premium (earnings yield less 10-year Treasury yield) has declined to 3.9%. Picture source: Fidelity Investments

U.S. Stock Market – Earnings and Valuation

U.S. Stock Market – Earnings and Valuation The valuation is high relative to history, but not near historical extremes. The U.S. stock market should remain under pressure until Q3 earnings season. Picture source: Fidelity Investments

Valuation – U.S. Stock Market Capitalization-to-GDP

Valuation – U.S. Stock Market Capitalization-to-GDP The U.S. stock market capitalization-to-GDP is a general gauge of market valuation, but it’s not very useful for short-term market timing. Picture source: Bloomberg

Earnings, Margins and Valuation

Earnings, Margins and Valuation Considering earnings growth, operating margin and valuation, the S&P 500 should remain under pressure until Q3 earnings season. Picture source: Fidelity Investments

Equity Valuations

Equity Valuations This chart shows that equity valuations are not very cheap, but not stretched either. Picture source: Pictet Wealth Management

Earnings, Dividends and Valuation

Earnings, Dividends and Valuation Considering earnings growth, dividends and valuation, the U.S. stock market should remain under pressure until Q3 earnings season. Picture source: Fidelity Investments

Valuation Gap Between High and Low Dividend Yield Stocks

Valuation Gap Between High and Low Dividend Yield Stocks This chart shows that the valuation gap between high and low dividend yield stocks is almost the widest ever. Picture source: Goldman Sachs Global Investment Research

Valuation and Demographics

Valuation and Demographics Our world is aging with high levels of debt and low interest rates, maybe for a long time. The chart shows that an aging population affects yields. You may also like “Debt and Demographics.” Picture source: Fidelity Investments

S&P 500 – Valuation Since 1900

S&P 500 – Valuation Since 1900 This interesting chart puts into perspective the current S&P 500 valuation. Picture source: Real Investment Advice

S&P 500 Index – Earnings & Valuation

S&P 500 Index – Earnings & Valuation The S&P 500 valuation is high relative to history and the earnings growth estimate has fallen to +3.7% for 2019. You may also like our “Stock Market Valuation.” Picture source: Fidelity Investments