Group 1 - Businesses are currently generating strong profits, which is a key driver behind their rising valuations [1][3] - The outlook for future earnings is positive, with projected earnings for 2025 expected to reach nearly $300 per share, representing a 14% increase [3] - The steady 10-year treasury rate at around 4% serves as a reasonable discount rate for capitalizing corporate profits into future value [4] Group 2 - Profits are essential for a strong economy; businesses losing money would lead to layoffs, reduced income, and decreased consumer spending [5] - The booming stock market is boosting confidence in profitable businesses, predicting a strong economy for the upcoming years, with GDP growth estimates around 4% for the second and third quarters [6] - Tax cuts for businesses, as implemented by the current administration, are expected to enhance profits, benefiting both stocks and the overall economy [7]
LARRY KUDLOW: Why stocks are bullish
Fox Business·2025-10-27 22:15