Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Bio
X •  LinkedIn
 

  S&P 500 Valuation Snapshot
Posted Under: Broader Stock Market
Supporting Image for Blog Post

 

View from the Observation Deck

  1. Year-to-date through 6/10/13, the S&P 500 posted a total return of 16.30%.
  2. The index level stood at 1642.81 on 6/10/13, approximately 1.6% below its all-time high of 1669.16 on 5/21/13.
  3. Despite the fact that the S&P 500 has completely rebounded from the previous bear market and moved on to set a new all-time high, investors can still find value, in our opinion.
  4. With the exception of Utilities, most of the major sectors are sporting forward-looking estimated P/E ratios below their 20-Year averages.
  5. In some cases, such as Information Technology and Materials, forward-looking estimated P/E ratios are significantly below the their respective 20-Year averages. Both sectors are cyclical in nature.
  6. We believe that cyclical stocks, on the whole, will garner more interest from investors than defensive-oriented stocks, like utilities, in the second half of 2013.


This chart is for illustrative purposes only and not indicative of any actual investment. The illustration excludes the effects of taxes and brokerage commissions or other expenses incurred when investing. 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, while the S&P Sector Indices are capitalization-weighted and comprised of S&P 500 constituents representing a specific sector.

To Download a PDF of this post, please click here.

Posted on Tuesday, June 11, 2013 @ 4:08 PM • Post Link 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
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
A Time of Transition
Only Half Of This Story Is As Good As Gold
The Only Constant Is Change – Most Of The Time
Little Reason To Be Defensive In This Recovery!
We See The Glass As Half Full
This Indicator Shows That Interest In Technology Companies Is Rebounding
A Sight For Sore Eyes
379 Months And Counting
An Eventual Sell-Off In Treasuries Could Sting More Than Just A Bit!
Comments on Market Corrections
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.
Follow First Trust:  
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 © 2024 All rights reserved.