This is getting truly ridiculous. They made another run at another all time high on the S&P 500 today, notwithstanding that the Fed’s self-inflicted inflationary trap is closing in all around it. So when the virulent incoming data soon forces them to start tapering ahead of schedule and to begin the “lift-off” of interest rates long before the 2023 fantasy that is now priced-in, it will be Katie-bar-the-door time in the casino.
But here’s the thing. It’s going to happen when the stock market is more extended—-that is, bubble-ridden—than at any time in history, as measured by the current nosebleed level of PE multiples. With a decent amount of companies having reported for Q2 and sell-side analyst fully steered to the actuals by corporate America’s generally swarmy CFOs and IR departments, LTM reported earnings—the GAAP compliant kind you don’t go to jail for submitting to the SEC–are now estimated at $153.75 per share.