When the data changes faster than the scale which measures it, you get the chart below.
Crashing through the floor, the real (inflation adjusted) earnings yield of stocks is at a 70 year low. I’m almost certain it is an all time record low, too, I just don’t have a chart going back to the 18th century.
The fundamental question is, can companies raise prices for non-essential goods and services faster than their input costs? Can they raise prices faster than wages? Can they raise their earnings faster than inflation? IMHO, no way.
Thus, we all better be prepared for much lower P/Es going forward.