The Rising SPX PE Ratio

The P/E ratio for the S&P500 ratio doesn't get over 25 very often and when it has in the past, it wasn't long before things went south. A quick look at the history of the SPX PE ratio shows the ratio going to extreme levels during the bank meltdown recession of 2009 and technology sector disaster at the turn of the century.

Now there's no guarantees in life or in investing, but prudence notices correlations and if there's any familiarity with past performance, we may be looking at a situation that's about to correct itself.

While I'm not selling any of my positions, I am getting more and more conservative and demanding on what I do buy. I'm also raising cash that I can put to work quickly if the markets actually do decide to pull back.  

Take a few minutes and review the values on the right. It can be rather enlightening.
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SPX Historical Price Chart

Date Value
Dec 14, 2016 25.92
Jan 1, 2016 22.18
Jan 1, 2015 20.02
Jan 1, 2014 18.15
Jan 1, 2013 17.03
Jan 1, 2012 14.87
Jan 1, 2011 16.30
Jan 1, 2010 20.70
Jan 1, 2009 70.91
Jan 1, 2008 21.46
Jan 1, 2007 17.36
Jan 1, 2006 18.07
Jan 1, 2005 19.99
Jan 1, 2004 22.73
Jan 1, 2003 31.43
Jan 1, 2002 46.17
Jan 1, 2001 27.55
Jan 1, 2000 29.04
Jan 1, 1999 32.92
Jan 1, 1998 24.29
Jan 1, 1997 19.53
Jan 1, 1996 18.08
Jan 1, 1995 14.89
Jan 1, 1994 21.34
Jan 1, 1993 22.50
Jan 1, 1992 25.93
Jan 1, 1991 15.35
Jan 1, 1990 15.13
Jan 1, 1989 11.82
Jan 1, 1988 14.03
Jan 1, 1987 18.01
Jan 1, 1986 14.28
Jan 1, 1985 10.36
Jan 1, 1984 11.52
Jan 1, 1983 11.48
Jan 1, 1982 7.73
Jan 1, 1981 9.02
Jan 1, 1980 7.39
Jan 1, 1979 7.88
Jan 1, 1978 8.28
Jan 1, 1977 10.41
Jan 1, 1976 11.83
Jan 1, 1975 8.30
Jan 1, 1974 11.68
Jan 1, 1973 18.08
Jan 1, 1972 18.00
Jan 1, 1971 18.12
Jan 1, 1970 15.76
Jan 1, 1969 17.65
Jan 1, 1968 17.70
Jan 1, 1967 15.30
Jan 1, 1966 17.81
Jan 1, 1965 18.76
Jan 1, 1964 18.78
Jan 1, 1963 17.68
Jan 1, 1962 21.25
Jan 1, 1961 18.60
Jan 1, 1960 17.12
Jan 1, 1959 18.79
Jan 1, 1958 12.50
Jan 1, 1957 13.32
Jan 1, 1956 12.13
Jan 1, 1955 12.58
Jan 1, 1954 10.10
Jan 1, 1953 10.86
Jan 1, 1952 9.95
Jan 1, 1951 7.47
Jan 1, 1950 7.21
Jan 1, 1949 6.62
Jan 1, 1948 9.04
Jan 1, 1947 13.46
Jan 1, 1946 19.17
Jan 1, 1945 14.35
Jan 1, 1944 12.61
Jan 1, 1943 9.70
Jan 1, 1942 7.97
Jan 1, 1941 10.05
Jan 1, 1940 13.23
Jan 1, 1939 18.94
Jan 1, 1938 10.47
Jan 1, 1937 16.75
Jan 1, 1936 17.87
Jan 1, 1935 16.25
Jan 1, 1934 23.95
Jan 1, 1933 17.29
Jan 1, 1932 14.07
Jan 1, 1931 17.00
Jan 1, 1930 13.92
Jan 1, 1929 17.76
Jan 1, 1928 15.51
Jan 1, 1927 10.89
Jan 1, 1926 10.12
Jan 1, 1925 11.02
Jan 1, 1924 9.01
Jan 1, 1923 12.54
Jan 1, 1922 22.81
Jan 1, 1921 9.36
Jan 1, 1920 9.60
Jan 1, 1919 7.93
Jan 1, 1918 5.72
Jan 1, 1917 6.34
Jan 1, 1916 10.03
Jan 1, 1915 13.60
Jan 1, 1914 13.50
Jan 1, 1913 13.48
Jan 1, 1912 15.20
Jan 1, 1911 12.88
Jan 1, 1910 13.26
Jan 1, 1909 15.10
Jan 1, 1908 10.54
Jan 1, 1907 12.75
Jan 1, 1906 14.51
Jan 1, 1905 16.53
Jan 1, 1904 12.60
Jan 1, 1903 13.65
Jan 1, 1902 15.92
Jan 1, 1901 14.73
Jan 1, 1900 12.71
Jan 1, 1899 16.89
Jan 1, 1898 15.74
Jan 1, 1899 19.18
Jan 1, 1896 17.08
Jan 1, 1895 25.00
Jan 1, 1894 17.28
Jan 1, 1893 15.58
Jan 1, 1892 16.21
Jan 1, 1891 16.69
Jan 1, 1890 17.93
Jan 1, 1889 20.15
Jan 1, 1888 15.17
Jan 1, 1887 16.91
Jan 1, 1886 18.57
Jan 1, 1885 13.68
Jan 1, 1884 13.28
Jan 1, 1883 13.51
Jan 1, 1882 13.45
Jan 1, 1881 12.63
Jan 1, 1880 13.10
Jan 1, 1879 11.19
Jan 1, 1878 10.83
Jan 1, 1877 12.68
Jan 1, 1876 12.74
Jan 1, 1875 10.09
Jan 1, 1874 10.13
Jan 1, 1873 11.88
Jan 1, 1872 12.15
Jan 1, 1871 11.10