1087 days ago • Posted by Charles-Henry Monchau
US inflation at 3% is the level which starts to hurt equity market valuations
This chart shows historical link between the level of US inflation and the S&P 500 CAPE valuation ratio (CAPE, Shiller P/E, or P/E 10 ratio, is a valuation measure usually applied to the US S&P 500 equity market. It is defined as price divided by the average of ten years of earnings, adjusted for inflation)
Source: Jeroen Blokland, The Daily Shot