The market may be thinking:
1. There will not be an interest rate hike and taper. OR
2. Negative valuation will be offset by earning growth. OR BOTH

Try not to be against the Fed. The market was confirmed clearly by Fed, for example, a very recent one - ON RRP pool, that you won’t see a taper soon for all reasons that you know and we know.

Even in a case where no taper and no rate hike can not be 100% guaranteed, there is still a possibility that earning growth driven by inflation, which has not been priced in, will help offset the negative valuation before a hyperinflation starts to hurt earnings, if there is.

The current market calm but not excited proves that all factors above are working together now.

However, our models indicate that we are currently facing a very effective price-employment-wage inflation heading probably to a hyper situation and that, even in healthy inflation situation, the valuation will still weigh much more than earning growth.