The stock markets is starting to melt upwards! The mania continues as investors pile into equities and last week saw top 3 tech companies Amazon, Microsoft and Alphabet add $144B to the market cap in just one day, equivalent of one whole IBM. Yet, everyone continues to convince themselves that this is a fundamentals-driven market. Nothing can be further from the truth. This is purely a valuations-driven market as investors pay a higher multiple on almost every metric out there — from stratospheric P/Es, P/Bs, P/Ss etc. The following chart from Hussman Funds puts the median price-to-revenue ratio of S&P 500 stocks into perspective.