Market is rallying cause there is too much money chasing too few assets. PE ratios will not drop significantly baring catastrophe and then financial contagion. After that happens the money printer is turned back on and then...
I don't see a way out besides massive reconfiguration. We've been living in this world since 2008 and the train shows no signs of stopping, only speeding up.
I would consider death the asymptote, the divide by zero, dead things have no sanity.
I think there is a reversion to the mean bias, or this idea that we’re in post history era, or some other governing factors will kick in. Once out of a local minima things can become quite unmoored quite quickly.
"Hey Friend Listen, I know things in the world are scary right now... But It's gonna get way worse"
And there is too much money chasing too few assets because capital is over-concentrated (which, to be fair, was the point of money-printing; shoring up over-leveraged entities on the bad side of a given trade so that they wouldn't have to gasp close their positions and diffuse that wealth across their counter-parties.)
