But the Fed can control earnings to some extent in a way which has been most beneficial to companies over the past few years. Namely lower borrowing costs. Those lower costs feed directly into the bottom line. And those lower borrowing costs have also allowed companies to borrow cheap money for stock buybacks which lowers the P/E ratio due to fewer shares outstanding.
It's simple really, if you build it, they will come. Corporations have been taking advantage of the easy money. Earnings may be OK because of easy money, layoffs, stock buy backs, but revenues stink. Virtually all of the large companies have shrinking revenues. How long can earnings go up without true growth? This won't last forever.
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