The Ponzi scheme is about to blow up pic.twitter.com/356bZSmtAg
— The Insider Trader (@AlessioUrban) November 11, 2019
It's almost as if between financial engineering via buybacks, market engineering via the Fed and bad news engineering via non GAAP reporting the entire stock market has turned into a giant Ponzi scheme.🤔
— Sven Henrich (@NorthmanTrader) November 10, 2019
As of today the gap between Q3 GAAP EPS & non-GAAP stands at $5.25 or 14.9% higher which is near levels generally associated w/ recessions. Annualized Q3 earnings implies 22x P/E on $SPX. pic.twitter.com/NntldXzCku
— Greg S. (@GS_CapSF) November 11, 2019
Per fund manager survey, cash levels had largest monthly drop since Nov16, reaching lowest levels since 2016. #FOMO pic.twitter.com/QHeKX5vrpe
— Driehaus (@DriehausCapital) November 12, 2019
As Morgan Stanley said Monday:
" .. the Fed's aggressive actions worked — at least in terms of asset price inflation. .. What the Fed has not been able to do is change the trajectory of earnings growth." https://t.co/fRJX8I9DEs
— Carl Quintanilla (@carlquintanilla) November 12, 2019
Perspective chart:
1. Real GDP growth has been getting smaller from cycle to cycle
2. Massive debt explosion since the last cycle to produce the least amount of growth of cycle
3. Tax cuts have not even managed to produce a statistical blip in trend pic.twitter.com/0UsioAtfzg— Sven Henrich (@NorthmanTrader) November 10, 2019
The forward 12-month P/E ratio for $SPX is 17.4, which is above the 5-year average (16.6) and the 10-year average (14.9). https://t.co/5l2MKcaI7o pic.twitter.com/hTEVItIlVw
— FactSet (@FactSet) November 10, 2019
Even the SEC Commissioner is agreeing with me on this one! Of course it’s manipulation. That’s literally the entire purpose of it. 97% of companies use non-GAAP accounting, they buyback their own stock, many are in excessive debt on all levels, they are running off of easy money policies, and all of the other insanity going on today. OF COURSE stocks are up! They have absolutely no excuse to ever be down with all of this sorcery and alchemy! But don’t ever give a single shred of legitimacy to it. It doesn’t deserve it… even for a moment.