I recently spent some time in analyzing the PE ratio trend of the S&P500 stocks and found that we might be in an interesting spot right now.
The PE seems to be reasonable relative to the last 20 years average PE from 1988 till 2007.
In this chart you see that the red line is the average PE and the blue line is the actual values. You will notice that the two blue peaks are for the 1996 and the 1999 internet boom era.
