Here’s my chart for today. I’ll talk about it shortly after 3:30 p.m. Eastern (12:30 p.m. Pacific) on the Bloomberg Businessweek radio show. Also, I’ll present my Stock of the Day just after 4:05 p.m. (1:05 p.m.) on the radio and later on social media. You can hear me on Bloomberg Radio or see me at Bloomberg Global News on YouTube. Earlier charts are on my Tumblr page.
Thanks for your interest. It’s appreciated.
Earnings estimates for the next two years make U.S. stocks look more costly in historical terms than just one year’s worth of projections, or even past results. The S&P 500 Index closed Thursday at 26 times earnings, using a gauge that takes estimates for the longer time period into account. That’s close to the Sept. 2 ratio of 27.2, the highest since data compiled by Bloomberg starts in 1990. This indicator was cited by Jeffrey Gundlach, chief executive officer of DoubleLine Capital LP, in a presentation Tuesday. The S&P 500 hasn’t set a similar high relative to the past year’s earnings or next year’s estimates.
Stocks Editor, Bloomberg RadioEditor, Chart and Stock of the DayStock of the Hour, Bloomberg Television
Author, Visual Guide to Financial Markets