A measuring stick for the markets

Assess the drift, not the multiples

The 2020/21 rally in stock prices, and asset prices more generally, has left many people confounded. Especially, since many people felt that the base in Feb’20, the eve of the Corona Crash, was already significantly inflated after the 2010s run. This routinely leads to a doomsday debate in financial markets every time there is a correction with the lead…