Marks cites JPMorgan chart showing negative correlation between S&P 500 PE ratios and subsequent ten-year returns.
“And it was a negative correlation, which means the higher the PE ratio you pay, the lower the return you should expect.”
Marks says S&P valuation suggests very low single-digit returns over the next ten years based on historical PE ratios.
“Historically, if you bought at this PE ratio, your return over the next ten years averaged in the very low single digits.”
Marks states 2023-2025 ranks as seventh best three-year S&P 500 period out of last 100 years.
“The period, twenty three four five is for the S and P 500 is, I think, the seventh best three year period out of the last 100.”