The longer inflation remains subdued, the longer this expansion lasts. The question here is simple – Are equities over- or undervalued with current inflation values? Here’s a look.

(For bottom-liners – with the today’s inflation readings close to 3%, stocks will be teetering for the next couple of years. That is, unless inflation subsides.)

Country Y/Y CPI Y/Y STOCK MARKET Month United States     31-01-50 United States     28-02-50 United States     31-03-50 United States     28-04-50 United States     31-05-50 United States     30-06-50 United States     31-07-50 United States     31-08-50 United States     29-09-50 United States     31-10-50 United States     30-11-50 United States     29-12-50 United States   23.3113633 31-01-51 United States   23.89402281 28-02-51 United States   20.61635525 30-03-51 United States 10.25096 21.33826559 30-04-51 United States 10.08047 11.74022021 31-05-51 United States 9.686971 16.03462293 29-06-51 United States 9.556025 23.14231137 31-07-51 United States 8.792596 24.61382395 31-08-51 United States 9.00335 19.79148259 28-09-51 United States 8.683008 16.59481801 31-10-51 United States 8.760331 14.79349736 30-11-51 United States 8.751027 14.36156656 31-12-51
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