It was the best of times, it was the worst of times. Stock market indices are achieving record highs while nearly 40% of publicly traded US businesses lost money over the last 12 months (according to James Mackintosh of the WSJ). How is that happening? How do companies like Tesla trade at valuations of billions despite losing money? Expectations and hope. The markets expect money-losers to turn around and become wildly profitable – akin to Amazon’s success. However, how long can our expansion last? Will a recession knock those money losers even further to the curb? Low interest rates only carry a company’s valuation so far. At some point companies need to make profits.