THE S&P 500 JUST DID SOMETHING VERY FEW PEOPLE UNDERSTAND

EPS growth just came in at 27.1% YoY.
That is NOT normal. That is explosive.
Most people don’t realize this but the market’s long term return of around 10% per year comes from earnings growing around 10% per year.
Profits drive stock prices.
So when earnings are growing at 27%... and the market is moving up…
That move is not random.
It is being justified by fundamentals.
Not all of it.
But a lot of it.
This is why the market does NOT need to crash just because it ran.
The floor just moved higher.
Now here is what actually matters…
First, some of this growth is inflated.
Big tech is marking up private investments and running that through earnings.
Amazon did this with Anthropic.
That boosts EPS without real cash coming in.
Second, 27% growth is NOT sustainable forever.
It will slow.
The question is when.
If it doesn’t slow soon, this market can move a lot higher than people think.
Third, AI spending is a double edged sword.
Companies are buying massive amounts of chips.
Those costs get depreciated over time.
That means future earnings can get dragged down as those expenses stack.
So yes, things are strong.
Very strong.
But you still need to keep ratios in check!
The takeaway is simple…
The bull case right now is real.
The risks are real too.
This is exactly why you stay positioned in a way to be fine no matter what happens!
You build a portfolio that will win if this keeps running
And survive if it doesn’t.