Prof G Markets · Friday, July 3, 2026
The host expressed skepticism about current market earnings growth, citing the high Schiller PE ratio, which is approaching dot-com bubble levels. Concerns were raised about the reliance of earnings on contracts with AI companies like OpenAI and Anthropic, and how accounting standards might reflect increased stakes in private AI investments for big tech companies.
“Um, because I look at, you know, the Schiller PE, for example, which is extremely high right now, basically coming up on dot com territory.”
“And that is a lot of these earnings that we're seeing, they they hinge on these contracts with these AI companies whose ability to actually pay out on those contracts, I think is not unreasonable to say that they should be at least questioned.”
“Um, Open AI and their spending plans, Anthropic and their spending plans, SpaceX, etc.”