According to the Forward P/E, the S&P 500 is cheapS&P 500 IndexTVC:SPXSwissquoteThe S&P 500 index continues, week after week, to preserve its underlying bullish trend. Correction phases remain confined to the short-term horizon, while technical support levels repeatedly revive the broader positive trend. A trend can be reignited several times, but it only reverses once. And the underlying trend of the S&P 500 will turn bearish when the valuation of the US equity market becomes excessively high. My previous analysis on S&P 500 valuation dates back to September, and since then, the S&P 500’s valuation profile has improved further following the latest quarterly results. The chart below takes you to my analysis from last September. You can also click on the chart below to view the bullish 12-month target set by institutional investors. What is the situation now, on Monday, November 2, 2026? In terms of stock market valuation, the S&P 500’s situation has therefore improved since September: · The forward P/E has reached a new multi-year low, as profit growth prospects are very strong, particularly in the semiconductor sector. · The Shiller P/E continues to trend higher toward its 1999 record high. The chart below, sourced from FactSet, shows the forward P/E of the S&P 500 index. It has reached a new multi-year low, demonstrating that the S&P 500 is still cheap relative to the expected earnings of S&P 500 companies. Therefore, short-term corrections in the S&P 500 remain buying opportunities, as the S&P 500’s valuation still has room to expand. Regarding semiconductors and their potential, you can read my analysis of the SOX below. DISCLAIMER: This content is intended for individuals who are familiar with financial markets and instruments and is for information purposes only. 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