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2023 Mid-Year Market Outlook

Financial Decoder

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The Influence of Inflation Rate on Stock Market Values

The sweet spot in terms of when the market is traded at the highest PE ratios has been in and around 2% CPI. If you get much lower than that into deflation you start to see a bit of a compression in valuations. That's starting to improve with this inflation but there's probably more work to be done.

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