Ahead P/E Ratios – Magazine 7 and Others

From Ed Yardeni’s web site:

Supply: Ed Yardeni, Accessed 11/22.

The Magnificent 7 ahead P/E ratio, utilizing costs as of 11/20 (so far as I can inform) was 28.1. If the Magazine 7 index rose 0.8% on Friday, then the ratio has risen to about 28.3. It’d be good to check to the combination trailing P/E ratios, however Yardeni doesn’t present this graph. It does appear that on a person stage, ahead P/E ratios are under trailing for the person shares, however this doesn’t show that the ahead P/E ratios aren’t too optimistic (in any case “ahead” means utilizing guesses about future earnings over the subsequent 12 months).

Right here’s the SP500 and VIX by way of Friday’s motion:

Determine 1: SP500 (blue, left log scale), VIX (tan, proper scale). Supply: Dow Jones, CBOE by way of FRED.