Market Commentary | Jul 07, 2026
2Q2026 Market Commentary: To Infinity and Beyond
Michael J. AroestyCFP®
CFP®
“There seems to be no signs of intelligent life... anywhere...”
- Buzz Lightyear, Toy Story
Markets are priced on the basis of earnings, hopes, and dreams. When I started at DBR & CO in 2010, investors appeared to be so bearish that they placed a negative value on hopes and dreams – despite earnings per share growth of nearly 94% that year, the stock market traded with an average P/E multiple of 15.5x, well below the index’s long-term average multiple of about 17x. With SpaceX providing the largest Initial Public Offering (IPO) in history this past June, investors are finally able to express all the themes that have captured their imagination: artificial intelligence, space exploration, datacenters, humanoids, robotaxis, etc. The value placed on “hopes and dreams” has come a long way since 2010, as the market multiple placed on earnings is currently estimated to be about 25x.1
“Applying yesterday’s valuation of the old Standard Oil shares the market worth of the company’s original stock was almost $2,000,000,000, and John D. Rockefeller became a billionaire overnight,” wrote the New York Tribune on September 29, 1916. At the time, Rockefeller’s net worth amounted to 2.5% of GDP. With the SpaceX IPO, Elon Musk’s net worth skyrocketed to nearly $1.1 trillion – which equates to 3.7% of US GDP. 4,400 of SpaceX’s employees own stock – and are now millionaires.
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1 FactSet
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Michael J. Aroesty
CFP®