Merryn Talks Money Melt-Up or Mirage? Markets Ignore Everything but Earnings
May 8, 2026
Markets are racing higher on blockbuster earnings and AI excitement. The show flags magazine covers as contrarian market signals. Strong S&P profits get historical comparisons to past market cycles. A looming wave of IPOs and record buybacks raises supply and disappointment risks. UK politics, inflation and stubborn gilt yields get linked to policy constraints and future market fragility.
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Earnings Are Driving The Melt-Up
- Markets are currently driven almost solely by earnings beats rather than macro issues.
- Merryn Somerset Webb notes the market 'doesn't care about anything except' earnings this season, fueling a Nasdaq surge despite geopolitical events.
Magazine Cover Indicator Worked Again For Oil
- The magazine cover indicator often signals contrarian timing, especially for oil.
- John recalls The Economist's cover calling oil 'far too low' and then oil fell ~10% after the cover's release.
PEG Ratio Looks Comfortable If Earnings Hold
- Strong forward earnings expectations have pushed valuation ratios like the PEG down to around one.
- John Stepek cites a note showing the PEG ratio is only just over one, implying prices look supported only if earnings growth forecasts hold.