Why Living Longer Means Paying More for Stocks

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For over 100 years, Wall Street strategists have been saying “stocks are expensive”—based on outdated comparisons.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.

Krilogy Financial, LLC (Krilogy) is a Securities and Exchange Commission (“SEC”) Registered Investment Advisor. Registration with the SEC should not be considered an express or implied approval of Krilogy by the SEC. Krilogy does not provide tax and legal advice. All expressions of opinion are subject to change. This information is distributed for educational purposes only, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services. Investments involve risk and unless otherwise stated, are not guaranteed. Investors should understand the risks involved of owning investments, including interest rate risk, credit risk and market risk. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategies discussed herein.

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    Time Ahead is an investing strategy book that distills decades of extensive research by portfolio manager Ryan Zabrowski into a straightforward guide to growing long-term wealth.

    © 2025 Ryan Zabrowski