Previous posts have analyzed returns for the ensuing 20 years, 10 years, and 5 years. This post concludes the series by looking at returns for one year.
Scatter Diagram: Initial P/E Ratio vs. 1-Year Stock Market Performance
|Starting P/E Ratio vs. 1-Year Returns|
The above scatter plot (click on image to expand) shows the historical relationship between the price/earnings ratio of the stock market at the time of purchase and