The market is currently sitting at its second-highest valuation in history with a Shiller P/E around 40. While Trump's tariffs and the resulting inflation are causing volatility, the article suggests earnings quality is the bigger issue. Some major companies are padding their stats to justify high valuations. Tesla is trading at 202x projected 2026 earnings, but 63% of its pre-tax income comes from regulatory credits and interest on cash rather than operations. Sales growth is projected at less than 9%. Apple is also mentioned for masking slow growth with buybacks. They have repurchased $841B in stock since 2013. Over the last three years, net income only grew 12%, but EPS is up 22% because of the reduced share count. The argument is that market leaders should be growing through innovation, not just financial engineering.