One could argue that next year's S&P earnings as a group probably are overstated if the economy is going to slow down, but even if they are 5-7% too high in aggregrate the index overall is still historically 'normal' - not too expensive, nor too cheap. As more profits go to corporations rather than labor (see stagnating wage growth for better part of this decade), along with many cash flush companies buying back stock thus decreasing the # of shares (and hence increasing the earnings PER share) - we seem to have hit a pretty nice spot for the investor class. For the rest of the population who rely mostly on income? Well I suppose the news is not good. As Cramer likes to say... America ... for the corporation, by the corporation.
