Bob Elliott
· Nonconsensus
· February 26, 2026 at 11:20
| Read on Substack ↗
Summary
The author observes that after a long period of multiple expansion, the US equity market has stabilized. With strong, double-digit earnings growth continuing, valuations may normalize not through a price drop, but by companies "growing into" their high multiples.
•US equity valuations are near all-time highs after years of multiple expansion.
•The market has stabilized in recent quarters despite high valuations.
•Strong, double-digit profit growth is continuing.
•This earnings growth could allow valuations to reset as earnings catch up to prices.