LongTermTrends - With the April numbers in the books, let's jump right into the charts.

With the April numbers in the books, let's jump right into the charts.

The big story from last month was once again inflation. Following an increase of 26.89% year-over-year of the M2 Money Supply, US inflation reached 8.54%. According to Kristalina Georgieva, an IMF Director, we are currently dealing with unintended consequences from excessive spending, which was done to support the economy during the COVID-19 recession.
With rising inflation, The Real Interest Rate for a 1-year US Treasury bond dropped to -7.21%, which is the lowest reading since 1951. According to John Authers, an editor at Bloomberg, higher inflation correlates with a lower P/E Ratio, which currently stands at 20.76 for the S&P 500.