Tag Archives: operating earnings

The S&P 500 is trading at near record high levels on the back of liquidity glut in the financial system. I mention the liquidity factor because all other fundamental factors do not support current levels and valuations.

In the face of the now-obvious negative outlook - the corrosive effect of deflation deleveraging, excessive debt, the softening U.S. and global economy, the "fiscal cliff", the implausibility of a European solution, the probability of a hard landing in China and the prospect that corporate earnings estimates were far too high - the question we get most often is why the market has declined so little, and why it seems so resistant to bad news. In our view the reluctance of the market to give up much ground is typical of....Words: 356

In the face of the now-obvious negative outlook - the corrosive effect of deflation deleveraging, excessive debt, the softening U.S. and global economy, the "fiscal cliff", the implausibility of a European solution, the probability of a hard landing in China and the prospect that corporate earnings estimates were far too high - the question we get most often is why the market has declined so little, and why it seems so resistant to bad news. In our view the reluctance of the market to give up much ground is typical of....Words: 356