13 factors driving equity bulls and bears
Bullish: Favorable P/E ratios
Twelve-month forward price/earnings ratios are not excessive and the earnings yield (the inverse of the P/E ratio) is elevated at levels relative to Baa corporate bond yields.
Source: Morgan Stanley Smith Barney Investment Strategy, Morgan Stanley & Co. LLC Research, Citi Research, ECRI, and Bloomberg. Note: Unless otherwise indicated, data are as of Feb. 15.