This week we discuss how advances in technology and dropping costs have made it better for investors. Has it ever been this good? Maybe investors worrying about payment for order flow are worried about the wrong things? Looking back when there was no dividend reinvestment and high commissions, it would have cost you an arm and a leg to replicate the index. Then we discuss updates to the S&P 500 earnings estimates and forward PE valuations. How things have changed from March of 2020.

How bid/ask spreads have narrowed greatly over the years.

Decimalization vs. fractions in trading

Higher commissions changed to zero commissions

Payment for order flow

Dividend Reinvestment

Before index funds no way to replicate the S&P 500 Index

How earnings estimates have risen since March of 2020

Earnings estimate ranges for the S&P 500 Index

Forward PE Ratios

Historical Averages PE Ratio S&P 500 Index

Calculating the forward PE

Mentioned in this Episode:

JP Morgan Guide to the Markets https://am.jpmorgan.com/us/en/asset-management/adv/insights/market-insights/guide-to-the-markets/

Derek Moore’s Book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547?ref_=nav_signin&