About a year ago, I wrote down the trailing PEs of four indices (source: Stockopedia) in order to reach a conclusion as to what is better: growth or value.
Here are the current trailing PEs:
UKX 17.6 FTSE 100 – a market proxy
T1X 21.9 Techmark Focus – a proxy for growth
HIX 14.3 FTSE350 Higher yield – a proxy for value
LIX 17.0 FTSE350 Lower Yield – another proxy for growth
T1X/UKX = 1.24. Looking at my favourite chart from the Peter Lynch book, I see that growth is not in the super-cheap category, but it is towards the lower end. Value shares still don’t look particularly attractive.
The figures are almost identical to last year, so the conclusion is the same as last time.