Wondering if anyone can provide me sources and data on a hypothesis for me.
My understanding is that if Stock Market participation (more dollars invested in stocks) grows faster than the income the companies the market represents generate by sheer supply and demand, this should cause the average PEs to go up.
Is this a correct general assumption?
Based on this, are there any statistics on general stock market participation? Maybe as a proxy is there any way to see the increase of people investing into diversified funds?
As someone who has only been investing for 2 or so years I wanna move beyond just VTI and chill and actually understand the mechanics of how markets work themselves out.
Thanks