Multiple Expansion - Year-Over-Year Change in the S&P 500 Forward P/E

Since the beginning of the year, the multiple expansion explains the S&P 500 return. Historically, S&P multiples contract or remain flat following years of big multiple expansion.

Image: BofA Merrill Lynch US Equity & US Quant Strategy

Multiple Expansion - Year-Over-Year Change in the S&P 500 Forward PE