S&P 500 at 19-Week High

Yesterday, the S&P 500 closed at 1423.57. That’s the highest close since January 3. It’s also 11.8% above the lowest close of the year, which came on March 10.

Also, has anyone noticed that Nicholas Financial (NICK) is above $7 a share?
With yesterday’s close, the S&P 500’s P/E ratio is at 18.3. That’s the highest level in four years. One small caveat. The P/E ratio often bumps up when the market is a good buy because the earnings are backwards-looking and prices are forward-looking. Trailing earnings are still heading down, but stock prices are up sharply, hence a higher earnings multiple.

Posted by Eddy Elfenbein on May 16th, 2008 at 10:29 am

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