Sunday, 11 October 2009
The above is a chart I found over at Jesse's Cafe Americain, a good blog. It shows how the current equity rally is been dirven by monetary inflation that is not finding its way to the real economy, but to asset markets. As a result, the S&P500earnings multiple has risen to the highest level ever. I suppose if you can have a 'jobless economic recovery' you can easily have an 'earningsless bull market'.