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The Day Inflation Broke

The Compound and Friends

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S&P 500 Drawdowns Versus Earnings Per Share Drawdown?

The only time that we've experienced something like this before, again, we're plotting the S&P 500 year over year change versus earnings per share drawdowns. The only other time was 1974. Maybe we're just getting faster and we're already pricing in next year's earnings drawdown. But I think that the most simple explanation is that we're just really overvalued.

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