Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Click for Bio

Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 

  Large-Caps Still Relatively Inexpensive Heading Into 2013
Posted Under: Broader Stock Market
Supporting Image for Blog Post

 

View from the Observation Deck

  1. The S&P 500 posted a total return of 15.99% in 2012. On average, the index returned 9.8% per year from 1926 through 2011, according to Ibbotson Associates/Morningstar.
  2. Despite the strong return in 2012, the S&P 500 closed the year 8.9% below its all-time high of 1565.15 on 10/9/07.
  3. Except for the S&P 500 Utilities Index, each of the major sector indices, as well as the S&P 500, all possess 12-month forward-looking estimated P/E ratios that are well below their 20-year averages (see chart).
  4. The S&P 500's estimated P/E is 13.19, significantly below its 20-year average of 19.86.
  5. Bloomberg estimates that the S&P 500's 2013 EPS growth rate will be 12.92%, as of 1/2/13.

This chart is for illustrative purposes only and not indicative of any actual investment. Investors cannot invest directly in an index. The S&P 500 is a capitalization-weighted index comprised of 500 stocks used to measure large-cap U.S. stock market performance.

Click here for a PDF version
Posted on Thursday, January 3, 2013 @ 3:53 PM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Weekly Market Commentary
Weekly Market Watch
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
US Economy and Credit Markets Week Ended December 28, 2012
US Stocks Week Ended December 28, 2012
US Economy and Credit Markets Week Ended December 21, 2012
US Stocks Week Ended December 21, 2012
REITs Still Popular With Investors Heading Into 2013
Waiting Game Continues For Natural Gas Investors
US Stocks Week Ended December 14, 2012
US Economy and Credit Markets Week Ended December 14, 2012
Majority Of Top Performing Stock Indices Since Last Bear Market Have Growth Bias
US Economy and Credit Markets Week Ended December 7, 2012
Archive
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2022 All rights reserved.