Core Inflation and Average Trailing S&P 500 P/E Ratio
In periods of low inflation, the P/E ratio is higher. Conversely, high inflation tends to depress the P/E ratio.
Image: Goldman Sachs Global Investment Research
In periods of low inflation, the P/E ratio is higher. Conversely, high inflation tends to depress the P/E ratio.
Image: Goldman Sachs Global Investment Research