I get it. Central banks are easing.
Why does the stock market keep going up when earnings growth is negative?
“It’s the liquidity, stupid.” t.co/tbLQy8t47B
— David Kudla (@David_Kudla) December 22, 2019
The actual market P/E ratio & company P/E ratios are really DOUBLE what they appear, because both the US + China experienced parabolic gov't spending+debt increases these last 10 yrs (US $10T->$23T; China $7T->$40T). It ended inflating corp profits (malinvestment), instead of GDP pic.twitter.com/ZeQVC15BUl
— M/I_Investments (@MI_Investments) December 22, 2019
The pros and retail are all in pic.twitter.com/bEuFjNXKE5
— jml (@jmllubber) December 22, 2019
w/ fed attempting to engineer a mini-cycle trough – their push w/ 'not qe' has forced asset prices to inflate to levels where growth is expected to ramp higher in early '20 – the only problem: if growth lacks in 1Q20, there will be a disappointment pic.twitter.com/CJN9ipkObJ
— Alastair Williamson (@StockBoardAsset) December 20, 2019
Corporate America has announced a whopping $1.2 trillion in float shrink in 2019. That figure marks the 4th time in the past 5 years that new cash takeovers & new stock buybacks have topped the $1 trillion mark. via @trimtabsadvisor #USstocks #alltimehigh
— Jennifer Ablan (@jennablan) December 22, 2019
“The Fed is also prepared to inject up to $490 billion around Dec. 31.”
Absolute madness with zero accountability as to collateral consequences. t.co/qHxFICi4nm
— Sven Henrich (@NorthmanTrader) December 22, 2019
Global stocks gained another $1tn in mkt cap this week as investors remain in a 'buy stocks' mode. Global stock mkts now worth $86.4tn, just $900bn shy of all-time high and equal to almost 100% of global GDP, entering bubble territory acc to Buffett's 100% bubble indicator. pic.twitter.com/cS9tCDBL17
— Holger Zschaepitz (@Schuldensuehner) December 22, 2019
It’s not the consumer.
The BEA tells us today that Corporate Profits are down 1.1% from a year ago. Profits are below a level reached in 2012.
Wall Street and the Fed thought there would be two rate hikes in 2019. Instead, the Fed cut rates by 75 basis points.
Includes US, ECB, Bank of Japan, and PBOC. Source: Haver Analytics.