Buy Signals - stock market returns depend on how expensive stocks are when you buy
| When the market's P/E ratio was... | The average return for stocks over the following ten years was... |
22 or higher |
5.0% |
20-22 |
5.7% |
18-20 |
7.5% |
17-18 |
9.7% |
16-17 |
10.7% |
14-16 |
11.8% |
12-14 |
14.0% |
11-12 |
14.5% |
10-11 |
15.9% |
Under 10 |
16.9% |