EFTA01367793.pdf

22 May 2015 US Equity Insights Many metrics suggest S&P valuation is full and dependent on low bond yields. S&P's 18 trailing PE and 17.3 forward PE are 12% and 22% above the averages since 1960. The median trailing PE of all S&P stocks is 18.7, 2 full points higher than its historic average. The index is entering 1997-2000 valuations ex. Tech. 'Figure 3: S&P 500 trailing PE since 1950 'Figure 4: S&P 500 forward PE since 1950 n t 0) s• 1 20 cr, y r 21 o ,„-, 22 It 19 IA 12 I 10 0 0 . ... ss i)sssis i;ee lseefl11 11 Isitsfeaslatilvilit Nil Toryna pc AC PE • Imadmkad•II0C40191 —mi. we ...ow •ue Aa. • ra2.111•7.1.0 Sant DealtS el* Ma Sea Deuced*ant Mgt -J {Figure 5: Median trailing PE of S&P 500 stocks 'Figure 6: PE of S&P ex Tech 28 • Marla,-, sn•i FE r 26 26 210i 5 161/ 24 ri 22 - 2O • 12 10 in g l ii i § 1 9 Rorsasn 2 /es I:Georg (WSJ —Veber valIng PE 019461600 Slab — SIP 500 Erring PE 2 win sak••••flepemio• —Trani PE USIP 500a 'ea rode • 168 Ritallbt - Meer / Sea Oases 0atan0 Bert Sea Caustic Commee• Sent Deutsche Bank Securities Inc. Payo 3 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0059406 CONFIDENTIAL SDNY_GM_00205590 EFTA01367793