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The forecast for the forward earnings per share for the S&P500 was about $55. The 10 year Treasury bond yield at this time was about
The forecast for the forward earnings per share for the S&P500 was about $55. The 10 year Treasury bond yield at this time was about 4.1%. Given that the earnings yield on the S&P500 is most recently about .5% above the 10-year Treasury yield, what would be the implied P/E ratio? What would be the forecast for the level of teh S&P 500 then?
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