One of the primary determinants of stock prices is how much investors are willing to pay for each dollar of earnings generated by the underlying issuer. This willingness is reflected in the price-to-earnings ratio, which is a primary metric used by investors to value the stock of companies. But suppose we made the following assumption. Suppose we held constant this investor willingness over time and made them indifferent at any given point in time. What does this tell us about the stock market over time? And what does this tell us about the stock market today?
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