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lsh123 | 1 year ago

With 10+% annual inflation in US in the last 2-3 years, 20+ P/E doesn’t look bad at all. Actually anything under 40 or so should be a strong buy.

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metadat|1 year ago

Based on what?

s1artibartfast|1 year ago

P/E ratios dont account for inflation.

IF the P/E is 40 and inflation is 10%, you will break even in 17 years, not 40 years.

If P/E is 20, you break even in 12 years.

Inflation has a similar but more dramatic impact on housing because you can leverage your investment with the loan.