Why 18.5 is the right PE ratio for the S&P 500
Originally posted May 28, 2012 Consistent long term growth rates are one of the tenets of buy and hold investing. In the case of the S&P 500 this annual growth rate has averaged 5.9% since 1950 (dividends excluded, compounded monthly). All you need to do is invest early, be patient, and wait for the inevitable payoff. The last 12 years have not been kind to …