Daily Archive: January 24, 2010

Jan 24

S&P500 vs Inflation vs PE Ratio over 97 years

The above chart shows the 10 year performance of the S&P500 (blue bars) versus the 10 year average annual inflation (red bars) versus the Shiller PE Ratio at the start of each decade (green bars). There are several notable observations… The worst performance was during the 1930s when the US experienced a deflationary environment and …

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