October 23, 2023 05:00 AM
Graphic: S&P 500 more expensive vs. 50 years ago
As Pensions & Investments celebrates its golden anniversary, there are some similarities between then and now. In 1973, turmoil in the Middle East led to an oil embargo that set off high inflation and low S&P 500 returns. While comparing different periods can prove challenging, and history doesn’t necessarily repeat, the equity market’s valuation is more expensive now vs. 50 years ago, making it more susceptible to downside risk.
S&P 500 historical valuation
Equity risk premium