P/Es Could Drop 20% & Stay There for Decades

That, at least, is the conclusion that emerges from a very long-term perspective on the relationship between interest rates and P/E ratios. On average since 1871, it turns out, P/E ratios have averaged just 12.8 when long-term rates have been in a secular uptrend vs. 17.5 when those rates have been in a secular downtrend.