S&P 500 Indicators Point Toward Decade of Grudging Gains
Investors may have to settle for gains of about 3 percent a year for the Standard & Poor’s 500 Index through 2025, according to Barry B. Bannister, a Stifel Nicolaus & Co. strategist. He based the projection on three indicators: the S&P 500’s multiple of average earnings in the last 10 years, stocks and mutual funds as a percentage of U.S. household financial assets, and the market value of companies relative to the replacement cost of their assets. Bannister cited the gauges in a report Tuesday, which said the index will reach 2,800 by 2025.