The S&P 500's Current Valuation Is (Still) Quite Fair. Here's Why.
The market hasn't exactly been firing on all cylinders recently. As of the latest look, the S&P 500 (SNPINDEX: ^GSPC) is down 8% from its late-July peak, mostly on fears that persistent inflation will push the world into a recession. And maybe it will.
We're now into the third quarter's earnings season with all of September's economic reports in hand, however, and so far the numbers aren't too bad. They're pretty good, in fact, with the analyst community still calling for earnings growth rather than an earnings contraction. This leaves the market's past and projected valuation in line with long-term norms.
Translation: You may want to stick with your stocks right now if you've been thinking about an exit here. Or, if you're already out, you might want to use the recent sell-off as a reentry opportunity.
Source Fool.com
