In the below charts we take the average YoY% change in consumer prices for 33 countries around the world. What we see is a trend of disinflation that started in mid-2011 and continued through September.
For the last 40 years, the employment to population ratio has been well correlated with equity valuations.As would make sense, when more people are working, income is higher, demand is more sustainable and investors rationally capitalize corporate earnings at a higher rates. When employment rates are low, the opposite happens.
So far the contraction in commercial paper has not had a negative impact on stocks, but history would suggest that this is a red flag.