This Is NOT an Earnings-Driven Stock Market

Stock price gains have outstripped profit growth four-fold

Highlights

• Stock price gains have outstripped profit growth four-fold…

• … and the pace of multiple expansion is a near-2 standard deviation event

• Neel Kashkari is the latest to push the “higher for longer” narrative

• Price wars and discounting activity are on the rise (not inflationary!)