But the reality is that there is no way to go ultimately because at 20x earning multiples, the markets are expensive and inflation is really persisting. And I can give examples on the Coke results, Pepsi results, you name it. They are all hiking prices by 12%, 10%, and their volumes are dropping 2-3% every quarter. This story cannot go on without something giving up.
What is the assessment then as to how you are expecting things to trend then when it comes to the US markets? Just taking a look at the fact that there are talks about earnings recession, are those actually worries that one should be cognisant of?So, the interesting comments from the Coke CEO when he was asked exactly the same question as to, do you see a recession? And he said, look, we do not see any recession at all and if we get the wage hikes, eventually we will have to pass that cost on to the consumer, but we are not willing to stop just because there is a recession which always seems to be two quarters away.
And even that is the situation now. So, earnings are not dropping. It is the same story that we are seeing for the last five-six quarters. Market expects that the earnings will drop. Well, how will the earnings drop because the consumer on the street is still holding the jobs good. It is a cycle, ultimately. The employment market holds, consumer spends. If the consumer spends, earnings grow. Employees go back and ask for a raise. The raise is ultimately passed on to the consumers. Top line of the companies grows. I think we are not able to break that cycle. So, ultimately, I am not surprised, opportunistically we are also trying to play the market whenever it hits a bottom of like 3700, 3800, then it rises up to 4200 on S&P and then we ultimately hit a ceiling and there comes some bad news and the market drops back again.
We are kind of stuck in a range, but unless something gives up, as I said, either the inflation gives up or the earnings drop happens, earnings do not seem to be dropping unless there is a severe recession. So, we are just kind of caught in a cycle. We will have to kind of persist and play within this range.