In his book Time Ahead, Ryan Zabrowski wrote a chapter on longevity—and uncovered something fascinating.
On The Investing for Beginners Podcast, he shared the correlation he found: as life expectancy increases, so does the price-to-earnings multiple of the market. The correlation is strong—about 0.7.
For over 100 years, Wall Street strategists have been saying “stocks are expensive”—based on outdated comparisons. That mindset causes underperformance and fuels the rise of index investing.
But here’s the insight: The longer we expect to live, the more we’re willing to pay for long-term cash flows.
Watch the clip to hear how this longevity-multiple link challenges conventional wisdom—and why it’s time to stop looking in the rearview mirror.