Standard & Poors is projecting GAAP earnings for the
500 for the year ending 9/30/15 to be $93.90.
For the year ending 9/30/14 the earnings were $105.96.
That is a drop of 11.4%.
The TTM (twelve trailing months) PE as of Friday 9/18 was
21.17. This is of course before the
futures banged down the index today.
Regardless, a 21 PE is optimistic for good earnings
growth. Or, there is a belief that there
is nowhere else to go in the world to get yield. Or there is a belief that the energy sector
is solely responsible for the earnings decline.
With $93.90 times 15 = an index at 1409. Just sayin’.