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EFTA01475956_sub_002 - EFTA01475956_200
S&P EPS: $125 2016 end S&P target: 2250 Figure 1: S&P 500 Trailing PE and implied ERP 10 15 20 25 30 35 0 5 Recession Implied ERP (rhs) Avg ERP ex 1975-82 = 3.5% Trailing PE (lhs) EFTA01476109 Avg ERP = 4% Avg PE = 15.9 Red dot shows implied ERP on 10yr TIPS yield of 1.5% instead of 0.
EFTA01476303_sub_001 - EFTA01476303_100
FTA01476393 18% 2.5% 1.2% Figure 41: S&P Trailing PE vs implied equity risk premium 10 15 20 25 30 35 0 5 Recession Implied ERP (rhs) Avg ERP ex 1975-82 = 3.5% Source: Deutsche Bank, S&P, IBES Trailing PE (lhs) Avg ERP = 4% Avg PE = 15.9 Overstated EPS from inflation distortions Low

Samantha Power
PersonIrish-American academic, author and diplomat
Utilities
OrganizationUtility company or services

Deutsche Bank
OrganizationGerman global banking and financial services company
Compustat
OrganizationOrganization referenced in documents
Brent
OrganizationEntity referenced in documents

Winnie Nip
PersonName reference in documents

Bloomberg L.P.
OrganizationAmerican privately held financial, software, data, and media company
S&P EPS
OrganizationOrganization referenced in documents
Health Care Providers & Services
OrganizationOrganization referenced in documents
Internet Software & Services
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Energy Equipment & Services
OrganizationOrganization referenced in documents
Sector and Industry Allocation
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Auto Components
OrganizationOrganization referenced in documents
Avg PE
OrganizationOrganization referenced in documents
Ju Wang
PersonPerson referenced in documents
Air Freight & Logistics
OrganizationOrganization referenced in documents
Avg FF
OrganizationOrganization referenced in documents
Tight US
OrganizationOrganization referenced in documents
Electric Utilities
OrganizationOrganization referenced in documents
Independent Power Producers
OrganizationOrganization referenced in documents