Forward P/E Ratio and Subsequent 5-Year Annualized Returns

With U.S. equities still trading as if nothing can go wrong, the next five years are likely to deliver thinner returns. The businesses are outstanding, but price still matters. Overpay, and even the best stocks can disappoint.

Image: J.P. Morgan Asset Management

S&P 500 Forward P/E Ratio and Subsequent 5-Year Returns