The P/E Ratio and Stock Market Performance

نویسنده

  • Pu Shen
چکیده

The U.S. stock market enters the new millennium with five consecutive years of exceptional gains. The S&P 500 index has gained more than 18 percent each of these five years and its value has tripled since 1995. Whether these hefty gains will continue is an important question for many people. Investors obviously care because stock price movements directly affect their wealth. More generally, large stock price movements may affect consumption and investment spending—and thereby influence the overall performance of the economy.

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تاریخ انتشار 2001