Valuation - S&P 500 P/E, S&P Equity Risk Premium and U.S. 10-Year Treasury Yields

Significant multiple expansion in the absence of a corresponding increase in earnings growth can generally be a warning sign that U.S. stocks are getting too expensive.

Image: Morgan Stanley Research

S&P 500 P/E, S&P Equity Risk Premium and U.S. 10-Year Treasury Yields