The stock market has been the most exuberant this year with a rally driven exclusively by multiple expansion (expensive assets getting more expensive) rather than earnings growth, and earnings estimates were actually reduced going into the second quarter, meaning the rally was detached from profit fundamentals.
factualpending
Speaker
John LoderingEvidence Quote
“this is a market that has gone higher almost exclusively on what we call multiple expansion uh not an increase in earnings in fact earnings you know numbers and estimates were were reduced going into the second quarter um so you had a complete rally basically this year on on multiple expansion [39:13]”
Created: 8/12/2026, 6:42:20 PM
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