Don’t Fall for the P/E Trap: Is it Really a Reliable Indicator of Future Stock Market Performance?

Investing in Innovation is More Important Than a Low P/E Ratio

Henrique Centieiro & Bee Lee
DataDrivenInvestor
Published in
9 min readAug 25, 2023

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The PE ratio trap. Image from MidJourney.
Are you also falling for the P/E trap? (Image generated on MidJourney)

It seems that everyone around me is calling for a bear market because P/E ratios are too high. B.S.!

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