Review & Outlook

Our take on the investing, financial, & economic themes of the day

The Misery Index and the Price of the S&P 500

Here’s an interesting observation from economist Ed Yardeni of Yardeni Research, Inc.  The “Misery Index,” which is the combination of the unemployment rate plus the inflation rate, is inversely correlated with the expense of the stock market, as represented by the forward price-to-earnings ratio of the S&P 500 Index.

misery index