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Another Record in S&P 500
The S&P 500 (SPX) continues its move higher, finishing the day at 2430. The index is now up about 8.5 percent in 2017.
Forward EPS have been rising helping to bring forward PE multiples on both operating and as reported PEs lower. The forward PE on the S&P 500 is currently 17, and 16 on an operating basis.
S&P 500 P/E Ratio Forward Estimate data by YCharts
The current SPY ETF Dividend Yield compared to the 10-year (TLT) yield suggest equities are still relatively cheap compared to the 10-year.
SPY Dividend Yield (TTM) data by YCharts
Biotech Coming Back?
Biotechs (IBB, XBI) also so showed cohttps://seekingalpha.com/symbol/IBB?s=ibbnsiderable strength today and a nice turn after taking a beating lately. With a nice reverse head-and-shoulder formation on the intra-day charts.
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It will be important to watch for follow through in the sector in the coming days. This sector has been missing from the market for the past 2 years. It will important if the sector comes back to life.
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Biotech Bounce- Higher It Goes?
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Michael Kramer is the Founder and Portfolio Manager of Mott Capital Management LLC, a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendation made during the past twelve months. Past performance is not indicative of future performance.