Melt-Up

by Nick Tompras  ACR Alpine Capital Research – see full PDF below Today’s equity market valuations have reached levels not seen since early 1998, when the S&P 500 broke 1,000 for the first time. At a price 30x higher than cyclically-adjusted earnings, yours truly opined at the time that the market was highly overvalued. Unaware of my sentiments, the index jumped 50% over the next two years to over 1,500. A melt-up for the ages. Valuation gravity finally intervened, as it always seems to do. With no prompting by any explicit event, other than, perhaps, drunken investors finally coming to…