$SPY $QQQ $RUT $UVXY $TVIX Expensive or Not?? The SPX current P/E ratio is 18.6X or well above the 10-yr average of 15.0x. However a combination of a low interest rate backdrop & shifting company composition of the blue-chip index today helps make the case for todays high valuations. More expensive valuations for the SPX as a whole make more sense when considering the most heavily weighted sector is now TECH, with high-growth companies in this sector tending to trade at higher multiples relative to corporates in other groups. TECH sector companies are trading 22.5x 2020 earnings while components of the financial and health care sectors are trading at 13.2x and 15.9x this year’s earnings. At the start of 2010, Technology was 18.7% of the S&P 500. On an apples-to-apples basis Tech is now 27.5% (with Google which is now Comm Services but was in Tech in 2010, but not Facebook because it was only added in 2013). Throw in Facebook, and you get a 29.4% weighting today.