WSJ: Money-Losing Companies Mushroom Even as Stocks Hit New Highs
The percentage of listed companies in the red is close to 40%
Analysts made larger cuts than avg to earnings estimates for Q4 2019; on a per-share basis, estimated earnings for Q4 decreased by 4.7% from September 30 thru December 31 [larger % decline than 5y avg (-3.3%), 10y avg (-3.1%) & 15y avg (-4.4%) for a quarter] @FactSet pic.twitter.com/ECW39iCQBL
— Liz Ann Sonders (@LizAnnSonders) January 10, 2020
The Fed is pushing the world into investing at the highest valuations ~OF ALL TIME~, when they know it's far worse b/c corp earnings are artificially inflated by the incredible use of debt over the last decade (and QE). EV/Sales is actually double/triple what it appears. pic.twitter.com/nQDd1QZW9B
— M/I_Investments (@MI_Investments) January 10, 2020
I made the point that the action by the Fed is similar to what it did in the run up to Y2K. Once that was over Greenspan withdrew liquidity and markets crashed.
“I’m a little bit worried that if it continues much longer that something will puncture it and people will get off the train,”
This indicator, which boasts one of the best track records of all in forecasting the market’s 10-year return, is still projecting well-below-average gains.