Stock Market Priced for +17% EPS Growth for the Coming Five Years (3x the Norm!)

Outside of the distortions around COVID-19 in 2020, this embedded EPS growth forecast was only exceeded by the prior Tech mania in the late 1990s.

Highlights

• Equity market remains expensive by historical standards

• The K-shaped economy is alive and well

• Nonfarm payrolls provide a false glow to the labor market

• Wednesday is all about Powell, the dot plots and the CPI report