$S&P 500(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$
Historically, valuations have risen during Fed easing cycles, with the SPX P/E Ratio expanding by 2.1 points.
The last 3 easing cycles were different, however, with the SPX P/E falling by an avg of 3.2 pts.
The key difference in the past 3 cycles was the starting point - the start-of-period P/Es in the last 3 cycles were the highest of all 10 cases.
For this cycle, 2024 is likely to have the 2nd highest P/E (1st ‘03) at the start of an easing cycle since 1966.
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