ASR on Bloomberg: “Inflation Dart” or “Inflation Concorde”
11th JUN. 2021
Whether “Inflation Dart” or “Inflation Concorde”, the Shiller P/E is at the historically extreme level of 37. Such valuations have only ever been achieved when inflation is positive and very low.
With inflation at 5%, the latest reading is a massive outlier. There is no precedent for the stock market being prepared to look through inflation this high and leave multiples at such an elevated level (or indeed set a new all-time record). So markets are staking a lot on the notion that this inflation number itself will prove to be a freakish outlier, soon to be corrected. What is the case that they are right?
Read the full article HERE (Bloomberg subscription may be required)
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