A strong quarter. Good news. For the time being. Profits growing faster than the long-run trend now. A reversion to the mean is likely to come in a few quarters.

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Pavel Kohout:

Daniel Lacalle:

The Federal Reserve balance sheet expansion created a massive financial asset bull market. Now, market participants need to adjust their expectations.

So far we have only seen a minuscule balance sheet reduction… and investor mindset has not changed

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Chart by @amital13

S&P500:

26% conpanies reported
87% Beat on EPS
72% in sales

Quantitative Easing Is Not A Tool For Deleveraging.

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Low Rates And Extreme Liquidity Have Made Governments Stop Structural Reforms And Borrow More Aggressively.

Reuters watchlist: predicting the next downturn

h/t @dlacalle_IA

 

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