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Traders are pictured at their desks in front of the DAX board at the Frankfurt stock exchange September 27, 2013.
Traders are pictured at their desks in front of the DAX board at the Frankfurt stock exchange September 27, 2013.
(Stringer/Reuters)

Corporate earnings can’t keep up with rising markets

It has to be a good time to sell your business: the stock market is frothy, valuations are high and the big corporates are flush with cash looking for a home. On both sides of the Atlantic, owners are taking advantage by doing IPOs, selling old shares to eager buyers and issuing new stock to investors. The question that no one can truly answer is whether the resurgence of equity makes this a good time to buy, or whether we’re simply seeing a cyclical adjustment by funds overinvested in bonds, or private equity firms recycling their portfolios.