Wall Street’s bubble may be gone, but stocks can still fall

NEW YORK (AP) — The good news for stocks is that this year’s sell-off means they no longer look eye-wateringly expensive.

The bad news: That won’t matter if corporate profits give out.

A stock’s price rises or falls for essentially two reasons: how much cash a company generates and how much an investor is willing to pay for it.

So far, Wall Street’s focus has been only on that second part.

With the Federal Reserve jacking up interest rates to knock down inflation, investors are…

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