Are We in a Stock Market Bubble?

2. Are Prices Discounting Unsustainable Conditions? This measure calculates the earnings growth rate that is required to produce equity returns in excess of bond returns. This is derived by looking at individual securities and adding up their readings. Currently, this indicator is just around the 67th percentile for the aggregate market—more elevated than some of our other readings. The earnings growth discounted in stocks is still a bit high. 35% 30% 25% 20% 15% 10% 5% 0% Mag-7 is discounting very high ear ...