Capital Markets: Observations & Insights
Not All Sectors Are Expensive Valuation
• Growth-oriented sectors are attractively valued compared to history, particularly given low levels of interest rates, in contrast to many other sectors
P/E Relative to 20-Year Median
Source: FactSet, based on S&P 500 Index, 3/31/18. Note: energy and telecom are excluded; the former because of an extremely high P/E due to depressed earnings and the latter owing to a small number of constituents. Real estate is a new sector classification, so for the historical data shown above, the industry group category that has nearly17 years of data was utilized.
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