For future inflation. It was relatively low between 2010 and 2020 and has been reducing at a fairly fast pace recently. It’s not obvious it won’t go back to the baseline.
I am just explaining how inflation influences p/e interpretation.
Everyone has their own model of what they think inflation will be in the future, which they use to judge PE and roi.
I am just explaining how inflation influences p/e interpretation.
Everyone has their own model of what they think inflation will be in the future, which they use to judge PE and roi.