AI Melt-Up Bubble? Maybe. Earnings Explosion? Definitely
The melt-up is getting fundamental
With equities already trading at record highs, the instinctive reaction is that much of the good news must already be priced in. But a closer look at earnings revisions, corporate guidance, dividends, M&A activity and liquidity trends suggests the backdrop is not just bullish — it is unusually bullish. The flip-side of this is of course that expectations are now extremely elevated — meaning even small disappointments could matter more than usual.