We’re coming to the end of the year and markets haven’t been nice to most investors this year. Anyhow, there’s still one more month till the end of the year and the PE10 says that markets are cheap.

Market Close: 2883.64
PE10: 12.05x

Notables include the fact that PE10 earnings have stopped trending upwards which means that actual earnings are coming in low and pulling the average down. Also notable is the fact that this is the longest streak (in months) that PE10s have remained low* since the GFC (in late ’08/early ’09). This latest streak has the PE10 at the lowest decile for 4 months (including this latest update) while the GFC streak was at 7 months.

Will this streak surpass the previous one? Only time will tell.

*On my spreadsheet, I have the monthly PE10s sorted into deciles.

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