Guggenheim's Scott Minerd has questioned the meteoric rise of Wall Street this year arguing that markets which have risen this strongly often pause or correct to consolidate their gains. Furthermore, he notes that the majority of price gains have resulted from P/E expansion as opposed to earnings growth. In the year to date, stocks have risen 16% due to multiples expansion and only 3% due to earnings growth. Since the start of 2011, P/E multiple expansion has led to a 28% rise in stock prices whilst earnings growth has only contributed to 6%. With this in mind, Minerd warns that without renewed earnings growth, the rally in stocks may not be sustainable. (VIEW LINK)