The American stock market has left all other assets in the dust as they grapple with the real world slow down in the global economy.
The growth in U.S. stock prices has not been supported by the growth in earnings, it has been supported by investors paying more for the available earnings supply. The S&P 500 has risen by over 34 percent since 2011, of which 28 percent has come from P/E multiple expansion.
The unemployment data continues to show depression like weakness as incomes fall and more workers move into low paying part time jobs. Click for larger image:
Corporations have learned to operate in a new normal environment with less employee compensation costs resulting in record high and unsustainable corporate profits relative to GDP.
The race is now on between which will continue to reach new monthly highs; the size of the Fed's balance sheet, the DOW, and the total amount of Americans on food stamps every month.
Polled Americans have reached a new record low confidence rating for Congress (dating back to 1973) despite record high stock prices:
h/t Sober Look, ZH, The Big Picture