One positive aspect of the evolution of this market cycle has been how the market has become less reliant on multiple expansion. Earnings and dividends now comprise almost half of the cumulative gains since October 2022, with the P/E expansion accounting for the other half. With the economy running pretty hot and earnings estimates maintaining their momentum, this hopefully will provide the fuel to keep the bull market going in its fourth year.
Earnings and dividends have become a more meaningful part of cumulative gains this market cycle