Stock Watch: As of October 26th, the S&P 500’s forward PE multiple fell to 15.2 which is below the average since 1980 and the average since 1950.

Stock multiples have fallen because earnings growth is strong and stocks have been largely flat in 2018. Surprisingly, the 2019 earnings estimates haven’t cratered with stocks. It’s up to investors to determine if stocks deserve low multiples and if the steady 2019 estimates accurately reflect the outlook for the economy and profits.