Aggregate Market For The S&P 500 Index Assignment | homework help websites
December 17th, 2018
Estimate The Aggregate Market For The S&P 500 Index And Either The Japanese Nikkei Index Or The German DAX Index
1.Forecast corporate profits for the coming period for an index such as the S&P 500.
2.Derive an estimate for the aggregate P/E ratio using long-term interest rates
Based on the relationship between the ‘earnings yield’ or E/P ratio for the S&P 500 and the yield on 10 year Treasuries
3. The product of the two forecasts is the estimate of the end-of-period level of the market
Using earnings multiplier approach; forecast the S&p 500 and the Japanese Nikkei index for next year