The equity market has shown longer-term secular bull and bear cycles.

Longer times with a recurring pattern are known as secular cycles.

These secular periods in the stock market are influenced by developments in the P/E ratio.

The cycles, which frequently last for years at a time, correlate with the peaks and troughs in P/E ratios. The P/E ratio cycle tracks the inflation rate cycle as it approaches and departs from times of price stability (low inflation).

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