Commodity Trade Mantra

Posts Tagged ‘Earnings Growth’

Last 2 Times Equity Valuations Were This High, Result Was A Historic Crash

The current P/E expansion cycle is now one of the largest in history. Although equity valuations are typically highest during periods of low interest rates, the current 18x P/E stands at the upper end of the historical valuation range. During the last 40 years the only instance in which S&P 500 forward P/E exceeded 20x was the Tech Bubble (peak of 24x in December 1999).

Why The Stock Market Is Detached From The Economy

While statistical economic data suggests that the economy is rapidly healing, it has only been so for a very small percentage of the players. For most American’s they have only watched the “rich” prosper as the Federal Reserve put Wall Street before Main Street. Moreover; global deflationary pressures have only begun to wash back on the domestic economy.

This Chart Shows How Bad The Economy Really Is: “Flashing Red Warning”

Forget about all the minute-by-minute noise for a moment & take a look at this chart. Last year analysts called it a fairly robust growth & cited these numbers as evidence of economic recovery. Wonder what they’d call it now, considering it shows a massive collapse in earnings per share growth across the board.

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