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Are stocks (and real estate) just an appealing store of value for wealthy people? Are changes in typical price to earnings ratios over time just a marker of inf
by gentleman11 5y ago
Are stocks (and real estate) just an appealing store of value for wealthy people? Are changes in typical price to earnings ratios over time just a marker of inflation?
Edit: looks like the P/E ratio almost doubled in 2021 from 20-25 to 40-45. Is that just because revenues were down during COVID, or is it where all the stimulus spending ended up? https://www.multpl.com/s-p-500-pe-ratio/table/by-year https://www.multpl.com/s-p-500-pe-ratio/table/by-year
- heavyset_go 5y agoWe never really let up from the quantitative easing implemented a decade ago, with QE4 being conducted in response to the pandemic. Interests rates are already low, and it seems like a conscious choice not to raise them because of the potential negative implications. Everyone seems to be buying assets, whether financial or real, as a result.