Jurrien Timmer(@TimmerFidelity):Note the divergence in the chart below between the models that include rates and the one that doesn’t. You can also clearly spot previous bubbles, including 1987, 2000, and 2021, when none of the P/E multiple at the time could be explained by these three variables. We are not there today, provided margins and credit spreads hold up (which they are). The point of the chart is to highlight how damaging rising rates can be if they are not offset by growing earnings.

Jurrien Timmer

@TimmerFidelity

Dir. of Global Macro @Fidelity. Student of history, chart maker, cyclist, cook. Helping investors break thru the clutter. Views are mine.

Joined December 2014

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Jurrien Timmer@TimmerFidelity

2026.10.30 05:57

Note the divergence in the chart below between the models that include rates and the one that doesn’t. You can also clearly spot previous bubbles, including 1987, 2000, and 2021, when none of the P/E multiple at the time could be explained by these three variables. We are not there today, provided margins and credit spreads hold up (which they are). The point of the chart is to highlight how damaging rising rates can be if they are not offset by growing earnings.