Chart of the week: the dangerously pricey S&P 500

Chart: S&P 500 p/e ratios since 1976

The S&P 500 is dangerously pricey, according to a Goldman Sachs note. The bearish tone of the report has raised eyebrows, given Goldman’s reputation for being perma-bullish. It points out that the index’s current price/earnings (p/e) ratio is 15.9, a rarity in market history.

Since 1976, the only times the p/e has been higher than 17 were during the tech bubble of the late 1990s. The ten-year and 35-year average p/es are 14.1 and 13 respectively.

• Stay up to date with MoneyWeek: Follow us on TwitterFacebook and Google+

MoneyWeek magazine

Latest issue:

Magazine cover
Prime location

The best property buys in the eurozone

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues

Which investment platform?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from. They all offer various fee structures to suit individual investing habits.
Find out which one is best for you.


22 May 1980: Pac-Man hits the arcades


It didn't take long for Pac-Man, or Puck Man as it was originally called in Japan, to become a worldwide craze after it was released on this day in 1980.

The Kids' Portfolio: the four best funds to buy for your children

Investing for your children's long-term future is an excellent idea. But what should you buy? The Kids' Portfolio is a simple collection of four funds intended to be tucked away for 20 to 40 years.