The Gift That Keeps Good

Apple was trading at a 10% earnings yield while the cost of capital is zero. Right now they're trading at a PE ratio of 20. So, despite being 30 or 40 percent from the highs, it's actually more expensive than it was last year. The bond people are idiots credit for saying that forward inflation expectations in 2020 and 2021 were horribly wrong to the upside. It could happen again, which would send everything to hell if it was true. If inflation doesn't abate, then financial assets are fucked. Dylan McLaren: We've never seen this kind of asset bubble on such a scale before.