Email of the day on the relationship between inflation and P/E
Comment of the Day

September 08 2022

Commentary by Eoin Treacy

Email of the day on the relationship between inflation and P/E

Hi Eoin, Over the past 3 weeks or so I heard a lot of commentators saying "valuation of the stock market is too high in this inflationary environment". do you have historic comparisons in order to say where valuations should be? Tkx for your excellent work every day, appreciate it very much! kindest regards

Eoin Treacy's view

Thank you for your kind words and I am delighted you are enjoying the service. I have seen a good deal of conversation about this topic too. We have enjoyed decades when inflation, as measured by central banks, has reliably trended lower and been unsurprising. Now that we are in a new environment of surprising inflation, it deserves a reassessment of where value can best be found.

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