As we explore the topic of inflation at Charter Capital Advisors Research, as CPI and PPI are on the uptick, and certainly result in strain on our economy and equity markets, valuations have been, even in the COVID era very high in general relatively speaking.
While this has been noted before in our observations, and in the context of value investing, the emergence of higher inflation, while not validating these market valuations, has a touch of parity to current equity and asset valuations. Whether this gives any validation or justification for continued asset values or not remains to be seen.
Charter Capital Advisors Research