S&P 500's valuation has fallen to levels that have preceded past comebacks
By Fred Imbert
Published on March 25, 2026.
The S&P 500's forward price-to-earnings ratio has dropped to 19.7, just below its five-year average of around 20.1, and the cheapest the index has traded since "Liberation Day" in 2025. This comes amidst concerns about the U.S.-Iran war, which has fueled fears of recession and increased inflation. However, when SPX forward P/E falls below 20x, forward returns have been favorable.
Related Articles
BTC price falls below $68,000 as 10-year Treasury yield nears 1-year high of 4.5%
The bitcoin price fell 2% to $68,000 as the 10-year Treasury yield nears a 1-year high, impacting long-term financial stability and boosting commodity prices.
AstraZeneca's High-level Results From Phase 3 OBERON and TITANIA Trials In Chronic Obstructive Pulmonary Disease Show Tozorakimab Reduced Annualised Rate Of Moderate-To-Severe Exacerbations Vs. Placebo - AstraZeneca (NYSE:AZN)
Aristen's Tozorakimab reduced the risk of severe illness and should remain as effective as possible, according to new research by John Heinck (Nearly)
Bitcoin Just Entered the U.S. Housing Market
Aristhe uniquely titled "Ethic" (Ethic) is the first to receive an official title from the US Department of State for 2017: The New Year's Eve celebrations: