Crestmont Market Valuation Update: December 2022

This article was originally written by Doug Short. From 2016-2022, it was improved upon and updated by Jill Mislinski. Starting in January 2023, AP Charts pages will be maintained by Jennifer Nash at Advisor Perspectives/VettaFi.


Quick take: Based on the December S&P 500 average of daily closes, the Crestmont P/E is 115% above its arithmetic mean and at the 97th percentile of this fourteen-plus-decade monthly metric.


The 2011 article P/E: Future On The Horizon by Advisor Perspectives contributor Ed Easterling provided an overview of Ed's method for determining where the market is headed. His analysis was quite compelling. Accordingly, we include the Crestmont Research data to our monthly market valuation updates. See also his latest update: Understanding Secular Stock Market Cycles.

The first chart is the Crestmont equivalent of the Cyclical P/E10 ratio chart.

Crestmont P/E