U.S. stocks are anything but overvalued after taking inflation and unemployment into account, according to Edward Yardeni, president and founder of Yardeni Research. He cited the signal sent by his Misery-Adjusted P/E Index, or MAPE, in a report Tuesday. The indicator is calculated by adding the misery index, the sum of the annual percentage change in consumer prices and the jobless rate, to the S&P 500 Index’s price-earnings ratio according to projected profit. Thursday’s MAPE reading was 24.2, a point below its average since 1990, according to data compiled by Bloomberg.
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