This is a P/E ratio chart from MarketGauge by DataView, LLC, a site that provide varies charts and summary on the stock market data.
We can see S&P 500 has been trading at some P/E ratio that has been above the long-term average ratio for the last 8+ years.
The current index reflects a reversion back to mean, where P/E ratio is starting to trade within a respectable range.
Although Exchange Traded Fund (ETF) is a great vehicle for investment, it can be filled with bad apples and a few good ones. Even in today's market, there are still companies in the S&P 500 or other indexes where price doesn't meet with value. Nevertheless, ETFs are a great starting point to find some outstanding companies in today's business world.
Many outstanding businesses have fallen below 10 P/E. If you can figure out a predictable future for them, a basket of those companies will serve you much better in the long run. It would be naive to think we are in a market where everything is on a clearance sale, but certainly more bargains than ever than the last 8+ years.
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