The recent rally to new highs for the S&P 500 has caused the index’s valuation to jump as well. In fact, the S&P’s trailing 12-month P/E ratio has just eclipsed 20 for the first time since the early days of the current bull market. The last time the index’s trailing P/E was above 20 was on December 30th, 2009. Below is a chart showing this valuation reading since April 2009:
Below we extend the time frame back much further to 1990. We also include the S&P’s price in the chart as well.