American flag flying over government building in city, blue sky and clouds
They will see us waving from such great heights
Come down now, they’ll say
“Such Great Heights”, The Postal
A few weeks ago, we wrote about the importance of earnings as a major driver of this US equity rally, asserting that twelve month forward S&P 500 earnings estimates making new highs set the stage for the S&P 500 itself to make new highs.
Of course, when talking about equity prices, there are two components: earnings and valuations (much like how there were two distinct, but distant, components to The Postal Service in Ben Gibbard and Jimmy Tamborello).