SPX/SPY future price can be calculated by take earnings and compounding out in time using analyst growth projections. You can do this for any stock. Spx in 5 years maybe 1.6x times higher which is approximately a 5-6% annual return.
Historically speaking, sp500 yields 7% to 10% so current prices are promising wimpy returns according to analysts.
And if the analysts are wrong or something changes, the risk is definitely to the downside because sp500 is already trading at twice the expected growth rate of future expectations.
The legendary Investor Peter Lynch prefers to buy stocks when they are trading at 1x the growth rate in PE valuation.
So ya, ill pass on the SP500 index wimpy potential returns.
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