Summary
Now here’s a thing. A case of the E in the P/E ratio rising faster than the P (eg, if price is 100 cents, and earnings are 5 cents, p/e of 20; if price rises to 110 but earnings rise to 7 cents per share, p/e comes down to 16) So as our market has risen, shares have actually become cheaper on a fundamentals basis (on average), ie you are buying the average at 16 times earnings, not twenty, despite