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THERE ARE 2 MAIN REASONS STOCKS GO UP:
1. PE ratio expansion.
2. EPS goes up.
For 1, how much more can the PE ratio expand?
Not much more.
For 2, how much more can EPS go up?
Actually a lot.
So right now, we are flying an airplane with 1 engine.
The single engine is EPS growth.
(Not PE expansion, cause it's already close to ATHs for PE ratio)
in 2010, we had 2 engines, that's why the market ripped so hard since then.
But now, again, 1 engine.
Keep your ratios in check.
Do not over leverage.
Know what you own.