U.S. Inflation Accelerates to Six-Year High, Eroding Wages

Historically the stock market has NEVER sustained stock prices this high with such (relative) low corporate earnings.

What are you using? price/earnings ratio? If so, that’s not an accurate statement.

Shiller (CPI adjusted) P/E.

Although if we use the nominal P/E, I should concede that the market sustained this high a P/E once before. . . . for ten years . . . immediately before the market tanked on George W.s watch.

When did that happen?

Look at the chart.

It hapoened right up until the crash on GW’s watch.

The PE was not that high for 10 years. It went p and down like it always does.

Pretty close to ten. Just look at the chart.

I don’t need to remind you that
a. it ended badly and
b. the shiller p/e never sustained current levels.
c. as people (the baby boomers) retire odds are they tend to take their money OUT of the matket.

Savings interest rates have been rising too I’ve noticed in my accpunt

which 10-year span are you talking about?

the baby boomers span 18 years. They’re not going to be pulling their funds out on the same day. There are millions of people behind them, including the millennials which is bigger than the boomers.

fredgraph

Highest since 1975

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No, no, no! (R)ecessions only matter when things aren’t (D)ifferent!

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Bad year to retire. My pension is fixed. But I had to. 2020 burned me out. Mentally I’m gone.

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Interesting to note that this thread was started years ago over the blue-circled blip as some sort of veiled gotcha during the Trump presidency.

It’s also interesting to note that the longed-for wage increases came, and are now being eaten up by real inflation.

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