The US is in a recession.
Quarterly earnings by publicly traded corporations have fallen for SIX straight quarters. That covers a time of 18 months.
This has never happened outside of a recession.
Against this economic backdrop, stocks are in “la la land” rallying to new all-time highs.
The more earnings fall while stocks move higher, the BIGGER the bubble gets.
Stock bubbles are formed when stocks detach from fundamentals. By the look of things, this hit in 2015. And is has gotten significantly worse since then.
At current levels, the S&P 500 needs to fall almost 40% to catch up with earnings.
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3 comments:
This author is in la la land.Flawed logic.
I have told this information to a number of people, but they refuse to react by protecting their wealth.
The stock market is oversold. It is definitely a bubble trading at 24X earnings (S&P) according to David Stockman.
Cash is king. Buy after the crash and make a lot of money like the rich people do.
The stock market is being propped up until the presidential election. Does anyone actually believe the market will tank before that? They will not allow that to happen. They being the current powers that be of course.
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