The Globe and Mail reports in its Wednesday edition that we are witnessing a corporate profit cycle more powerful than anything in recent history. The Globe's Tim Shufelt writes that the effect is most pronounced in the United States, where S&P 500 earnings are expected to rise by 34 per cent this year over last. But on the earnings front as well, the effect is global. In all major regions, corporate profits have been the main driver of stock returns for the past year and a half, says Goldman Sachs. Could earnings themselves be in a bubble? It has happened before, most notably among American bank stocks in the run-up to the global financial crisis. They were overleveraged and overexposed to the housing boom, which dragged down financial sector earnings when the whole thing collapsed. That does not seem to be the case this time around. Earnings are robust, debt is manageable, and demand for computing power is way outstripping supply. Goldman Sachs says, "The bottlenecks are increasingly power, land and datacentre capacity rather than a lack of compute demand." An abundance of research points to plenty of financial breathing room. Plus, tech sector debt loads are lower than they are for the S&P 500 as a whole.