US After tax Corporate Profits are at all time highs and while the inclination is to say this is driven exclusively by programs like QE and ZIRP, the pre-crisis profit picture was also very rosy. The corporate sector is actually well positioned: Balance sheets are the cleanest in a long while. Companies are running very efficiently, with limited head count and business intelligence software is allowing firms to make changes on the fly. See the chart here (VIEW LINK)
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With earnings unsustainably high, hardly any bears left in the market, and with P/E's at 25 (using Shiller) - lots of potential downside in stocks from here. If last 4 years prove to be cyclical inside secular bear, and P/E's drop below 10, and earnings revert to more sustainable levels - 50% haircut would be conservative IMO