The Mother Of All Stock Market Manias

In his morning post, David Rosenberg put the current stock market mania in perspective. It seems that in only 0.1% of the time during the last 70 years has the S&P 500 traded at a higher forward PE multiple. In everyday metrics, that’s equal to 4 weeks out of the 3,640 weeks since 1950.

Then again, in a world faced by the Covid-Lockdown madness, staggering amounts of debt, central bank money-pumping extremes like never previously even imagined and outright fiscal insanity in Washington and most other capitals, why in the world is the present moment more propitious for the valuation of corporate earnings than during 99.9% of the time since the onset of the Korean War?