Valuation Chart

  • Interesting chart from SG via Einhorn’s Q1 Letter.
  • It shows the median forward P/E ratio of MSCI World Stocks split into two groups.
  • The first (dotted line) are stocks with the highest positive correlation to bonds. These trade on 24x.
  • The second (green line) are stocks with the highest negative correlation to bonds. These trade at 10x.
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