(AP Photo/Patrick Semansky, File) ASSOCIATED PRESSThe S&P 500 closed at 3,141 on Friday, up 634 points for the year or 25.3%. When you compare these gains vs. the S&P 500 earnings being slightly down for 2018, all the increase has come from investors valuing the earnings at a higher multiple. S&P 500 StockCharts.comWhile earnings have been flat valuations have risenAt the beginning of the year FactSet’s analysis had the S&P 500 earnings to be approximately $174 for 2019. The S&P 500’s P/E multiple on its forward earnings was 14.4x. S&P 500 net profit margins FactSetOver 2019 the S&P 500’s forward P/E multiple has risen from about 14.4x to 17.6x.

Source: Forbes November 30, 2019 12:45 UTC