Stock prices are going up as
In technical terms, strategists will call this multiples expansion. In other words, valuations are rising as reflected by an increasing price-earnings ratio.
And this divergence between stocks and earnings expectations has only gotten wider since we last wrote about it a month ago,
"Since the end of the fourth quarter (December 31), analysts have also reduced earnings growth expectations for Q1 2013 (to 2.2% from 2.5%) and Q2 2013 (to 6.7% from 6.8%)," writes FactSet's John Butters.
Here's a chart from FactSet showing stocks rising and earnings expectations falling.