Earnings have been growing but not at the clip that the stocks have been. P/E of many stocks are through the roof, and the Cyclically Adjusted PE is equal to 1929’s high. Remember what happened in 1929? Bank of America is sounding the alarm bell…
Money managers who’ve watched the surge in corporate profits take U.S. equities to records are starting to fret about earnings growth, and that’s an “ominous” sign, Bank of America says.
Source: Bank of America Warns of an ‘Ominous’ Sign for Stocks
