Deflation Tag

Navigating High Stock Valuations in a Deflationary World

14 Jan, by Knowledge Leaders Team in Economy

As we highlighted yesterday, stock valuations jumped again in December to another cycle high. As the first two charts show, the cyclically adjusted P/E multiple has only been higher on several occasions and the median stock is trading at a record price to cash flow...

Excluding Tax Increase, Japanese Consumer Prices Are Already Back in Deflation

27 Jun, by Knowledge Leaders Team in Uncategorized

The recent sales tax increase in Japan is wreaking havoc with price statistics, making year-over-year comparisons basically useless. To address this problem we have begun to make a very simple adjustment to the published price stats which is to subtract the impact of the tax...