It's "Mother Of All Bubbles"

The article argues that earnings are in a bubble, with a Shiller P/E of 42 implying an even larger valuation bubble than in 2000. It highlights two downside risks: declining earnings and multiple contraction. The message is broadly bearish for equities and suggests elevated downside risk if valuations mean-revert.

Analysis

The article argues that earnings are in a bubble, with a Shiller P/E of 42 implying an even larger valuation bubble than in 2000. It highlights two downside risks: declining earnings and multiple contraction. The message is broadly bearish for equities and suggests elevated downside risk if valuations mean-revert.