Corpus ID: 12344657

The P/E ratio and stock market performance

@article{Shen2000ThePR,
  title={The P/E ratio and stock market performance},
  author={Pu Shen},
  journal={Econometric Reviews},
  year={2000},
  volume={85},
  pages={23-36}
}
  • Pu Shen
  • Published 2000
  • Economics
  • Econometric Reviews
The U.S, stock market entered 2000 with five consecutive years of exceptional gains. The S&P 500 index gained more than 18 percent each of these five years, and its value tripled since 1995.> Concern has arisen recently that the stock market may be headed for a downturn because firms' share prices have become very high relative to their earnings. Analysts who hold this view point out that, in the past, high price-earnings ratios have usually been followed by slow growth in stock prices. Other… Expand

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