Great notes from my friend Josh at the Reformed Broker blog re: Arnott’s recent presentation in NYC. One especially interesting note is that he mentions what happens to PE Ratios when inflation increases > 4% (ie they get hammered). Some nice graphics from a recent post we did below. Also interesting is his mention of his favorite pairs trade: long BAC and short AAPL – likely the only person on the planet with that trade on…more on that and AAPL from this older post.
