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Stock market valuations remain extreme relative to historical norms, and a second stress fracture has appeared alongside them: corporate earnings growth has meaningfully diverged from its long-term trend.
That pairing — stretched multiples and an earnings trajectory that has broken from structural baselines — is what observers are characterizing as a double bubble.
The concern is direct: if both conditions correct at once, the resulting market drawdown could qualify as a crash.
Two Axes of Reversion, Not One Single-cause explanations for market fragility tend to understate the compounding effect when two vulnerabilities co-exist.
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