Motley Fool CEO Tom Gardner: S&P 500 (VOO) at 25× Earnings Is Stretching Valuations

The S&P 500 (SNPINDEX: ^GSPC) went through a correction, a drop of at least 10%, but less than 20%, in early 2025. But as July got underway, the index is once again near all-time highs. The average price-to-earnings ratio of the Vanguard 500 Index ETF (NYSEMKT: VOO), an S&P 500 tracker, is around 26x, which is lofty. But Tom Gardner, CEO of The Motley Fool, still sees pockets of opportunity. Here's where you should be looking for good investments.The S&P 500 is a curated list of the 500 largest publicly traded companies in the United States, selected by a committee at S&P Global, and meant to be representative of the broader U.S. economy. The companies in the index tend to be well-known businesses that are economically important.But how exactly is the index constructed? It is a market-cap weighted average of the stock prices of these 500-odd stocks.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool