Most of the S&P 500 is growing slower than inflation and markets trade at full price anyway

Magnificent 7 mask ugly earnings across the broader market.

OUCH! The S&P 493 – that’s the S&P 500 excl “Magnificent 7” – is expected to deliver just 2-3% net income growth in Q2, Q3, and Q4. That’s slower than inflation, meaning most of the market is barely growing in real terms. Measured against this, US equities are quite expensive!… pic.twitter.com/aoyWzRI2LN

— Holger Zschaepitz (@Schuldensuehner) August 5, 2025

Services #ISM now screaming LATE-CYCLE #STAGFLATION. Prices going up and New Orders going down. Not seen in ~18 years since before the GFC. pic.twitter.com/TDd6Re9XE2

— Richard Bernstein Advisors (@RBAdvisors) August 5, 2025