Re-Examine Valuation And Growth At New Record High

S&P 500 continues to make new highs ever since surpassing its previous high in late October. At 3093, it is 18.9x our 2019 estimated (E) earnings per share (EPS) of 163.50 dollars (USD), and 18.2x our 2020E EPS of 170 USD. Our 2020 EPS forecast represents only 4% year-over-year (y/y) growth. However, we believe mid-single digit EPS growth can be achieved if trade tension eases and a deal to lower tariffs is signed.