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Ep 411. Understanding Your Opportunity Cost in an Inflationary Environment

Focused Compounding

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Valuation of the S&P 500 and Real Rates

In this chapter, the speakers discuss the valuation of the S&P 500 and the real rates of inflation. They debate whether the valuation is skewed by a few large companies and question the empirical baselessness of the PE ratio. The speakers also express skepticism towards using forward P/E ratios and real rates in the current low rate environment.

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