Some data from the latest issue of Citadel Securities' *August Checklist* is worth noting: In Q2 this year, S&P 500 EPS growth reached nearly 33%, and corporate earnings expectations continue to be revised upward. What's more, this round of upward revisions is one of the strongest since at least 2000. Even more interesting: The index hit a new high, but valuations are actually declining. The S&P 500's forward P/E for the next 12 months is 20.1x, compared to 23.1x last October. The reason is simple: Earnings are rising faster than stock prices.