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Navigating High P/E Ratios and Market Shifts
This chapter examines the influence of high price-to-earnings (P/E) ratios on stock market valuations, detailing the transition from GAAP to operating earnings. It addresses the changes in corporate behavior, the rise of active retail investors, and the implications of current market dynamics for future returns. Furthermore, it discusses the political landscape in Japan and trends in the bond market, highlighting the interconnected nature of global finance.