RE:RE:The full short thesis report "EV/EBITDA valuation multiples of engineering firms do not leave much room for error – engineers have become 100% more valuable vs 50% for the S&P 500 in ~ the last 10 years and this is a BIG number" per FBN Sytchev. "No matter how one looks at the valuations" he writes, "the relative multiple expansion for the engineering peers has been enormous".
Central banks have been fighting inflation driven by ... governments of course .. spending like drunken sailors with no tomorrow, resulting in huge deficits to avert a recession. This is contrary to Keynesian economics that says governments need to have deficits only during recessions. We know perfectly well how this otherwise always ends .. austerity / huge spending cuts because investors will demand a much larger risk premium on sovereign debt to force governments to implement austerity measures. There is no IMF to give a loan and save western economies from huge spending cuts. The answer to your question is another question: Who will pay the salaries of all those engineering firms when government agencies will be cutting and the private sector has to borrow at larger risk premiums and how can engineering firms still grow at these rates to justify these "enormous" valuation multiples. Soros named this the boom bust cycle.