The S&P 500 fell 5.1% from 10/29 to 11/20.
But how did valuations move over the same period?
I broke it down by sector in the chart below.
The black dots show where each sector’s forward P/E stood at the S&P 500’s 10/29 short-term peak.
The grey dots show where they stood at the 11/20 short-term trough.
All sectors excluding Real Estate shown.
Valuation compression in 8 of 10 sectors shown, but most notably in Tech:
Tech Forward P/E on 10/29: 31.7x
Tech Forward P/E on 11/20: 27.2x
That’s a 4.5 point re-rating lower.
Certainly “not nothin.”
That’s all for today. Thank you for reading and to those who celebrate, Happy Thanksgiving!