The US market’s advance is predicated on multiple expansion

So the past year has been the year of earnings decline. Yet, the US stock market keeps powering to new highs. What's going on? It's called multiple expansion and it is the hallmark of all bull markets, cyclical or secular. The question is how long earnings will remain stagnant and whether this multiple expansion can continue in the face of stagnant earnings.
We know why multiples have expanded in the past: when interest rates go down, discount rates for future earnings go down and so those earn...

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