an tSionna {10.29.14}

From Chart of the Day.  Here's a historical look at Price to Earnings Ratios {PEs}.

Note that I think they are using trailing PEs in the chart.  That is they are showing PE ratios based on reported earnings and not on estimates.  Forward looking PEs take about 3-4 points off of this index.  In the end though it doesn't matter.  Whether using historical or expected PEs, stocks are trading within a normal band of valuation, albeit at the higher end of that range.  Even that has to be taken within the context of historically low interest rates.

*Long ETFs related to the S&P 500 in client and personal accounts although positions can change at any time.

Link:  Chart of the Day: Historical PE Ratios.