This is the Dow 52,000 issue of the day: is there a stock bubble ready to pop?

Maybe. But as our co-founder Larry Kudlow is famous for saying: “Profits are the mother’s milk of the stock market.”

Our corollary to this rule is that profits make the world go round.

Our friend Scott Grannis, an investor extraordinaire, sent us this chart last week:

Corporate earnings have been soaring, and the AI revolution is rapidly ratcheting up the productivity of American companies making them more profitable and cost-efficient.

So this argues against the stock market bubble theory. On the other hand, some of the near-trillion dollar AI companies have no profits YET. So beware.