S&P 500 Relative Value

GDP, Inflation, Income, Home Prices, and the Money Supply

The stock market is often benchmarked against nominal GDP to assess relative valuation:

But there are no rules about what else you can compare it to, like an inflation benchmark:

Or personal income:

Or even relative to home prices (which is especially interesting given the recent surge in home valuations):

While many of these charts suggest the market is beyond historical valuation averages, there are still some benchmarks that show some degree of reasonable pricing:

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