This chart below says it all and demonstrates the stark disconnect or divergence between stock performance and earnings growth (or lack of). Notice that the rally from 2017 to 3Q 2018 was at least justified with strong earnings growth , only to be derailed due to threat of Fed raising rates in late 2018 which was subsequently reversed.
So what's driving the market? Probably rational (or irrational ) expectations & assumption that the election year will underpin the stock rally - there is nothing other than a widely held belief to hold the market - and as we've seen before , beliefs can change fairly quickly. A stock rally based solely on momentum has a poor foundation. When belief reverses, it (market) changes course even quicker (take the escalator up but when confidence erodes, it takes the elevator down as it did in late 2018).
