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.