Thoughts on rates

You can’t compare the P/E of equities to the P/E of bonds

I think you can, for a very simple reason: Because this is how people actually do compare them and decide what’s the more profitable investment. If the nominal P/E of bonds is higher seen this way, they therefore buy bonds, not stocks. If that’s right or wrong doesn’t influence the decision and the effects of it on the bond and stock market.

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