There was a time when the market at least pretended to be influenced by the economy. Alas, with the advent of officially endorsed central planning those days are gone. Which in turn may be the primary reason why so many retail investors, brought up on the myth that the market is efficient and anticipating the facts instead of, as it has now become all too clear, reactionary, and anticipating liquid release by central planning academics who have never held a real job in their entire lives, have left the rigged casino. So what's a status quo regime that needs the retail dumb money (which is anything but in the past three years) to do? The only thing it can do: lower expectations. Which is precisely what Goldman has done. Because apparently one no longer needs growth to justify insane multiples. All one needs is a, drumroll please, stagnation. That's right - all you need, apparently, to buy stocks is hope and prayer that the US economy can sustain its stagnant state, and all shall be well. Of course, with GDP rising at best at a 2% rate each year, even as the public debt soars at 4-5x times that level, stagnation may well be the best thing the US economy can hope for.
So without any further vague references to a certain day in 1789, all we have to say is, Proletarians of the world, rejoice, for the great October Stagnation, and its 17x average historical P/E multiple is almost upon us!