Follow the money
- Thread starter dealmaker
- Start date
Ohhh that's right its that free money pumping stocks up again...that m2 money supply is just awesome.
Zero economic growth for over a decade, earnings completely fabricated, stock buy backs and everything else the fed can throw at the market to keep it from falling into the abyss, if equities had to actually rely on "REAL" economic growth to grow "ACTUAL" earnings without all the free handouts the markets would be 70% lower.....
Zero economic growth for over a decade, earnings completely fabricated, stock buy backs and everything else the fed can throw at the market to keep it from falling into the abyss, if equities had to actually rely on "REAL" economic growth to grow "ACTUAL" earnings without all the free handouts the markets would be 70% lower.....
Oh come on, you still don´t have an answer on this profane question? Let me help you out here:
Oh come on, you still don´t have an answer on this profane question? Let me help you out here:
That comic reminded me of an old Bloom Country strip from way back that had something very similar, and just as clever and funny, but could not find it to repaste here...
But I did find this article written before the election, and gave me a chuckle all the same. And how apropos now...
https://www.theringer.com/2016/7/14/16039874/donald-trump-bloom-county-slumlord-73a0f5ca3c17
You can keep repeating this garbage all you want there is no justification for valuing the SPX at 800 on any basis it's a ridiculous theory. We had real economic growth in many of the years since 2009 followed my absolutely massive earnings growth ( real growth ) in the later years. Two years in particular had earnings expansion that were exceptional by any historical standard. You and several others on here didn't seem to notice at all. Your mind is unable to process the success of any corporation at all; you just have an excuse for everything.
There is absolutely no such thing as real earnimgs growth, the massive programs and stimulus in the trillions and trillions and trillions of dollars is the only reason why companies had earnings, strip away any and all of the feds bailout money and the trillions in qe along with TARP, low historical interest rates and stock buy backs the last decade and there would only negative gdp.
Did you not hear what the fed said??????
They will do anything and everytbing to backstop this market. This entire market is propped up day in amd day out. The fed supplies every bit of help to the markets to keep it from collapsing. How can you not realize this???
Anddddddd here you go.
Right from Powells very own mouth, last night on 60 minutes interview. Im glad Scott went for the questions he did...maybe this will help you understand that the markets are propped up with federal reserve money!!!!!!!!
PELLEY: Fair to say you simply flooded the system with money?
POWELL: Yes. We did. That's another way to think about it. We did.
PELLEY: Where does it come from? Do you just print it?
POWELL: We print it digitally. So as a central bank, we have the ability to create money digitally. And we do that by buying Treasury Bills or bonds for other government guaranteed securities. And that actually increases the money supply. We also print actual currency and we distribute that through the Federal Reserve banks.
Earnings have mostly stagnated for the last decade. What you're thinking of are stock buybacks which artificially inflate common financial ratios (EPS in particular), enrich share holders, and disenfranchise investors. They do this via debt which of course they get from stimulus programs because our government is run by literal chimpanzees. You realize that when a stock buyback program begins earnings often stay the same or decrease but the EPS numbers "look right" because the other part of the equation, basic shares outstanding, is reduced as well? You do realize that analysts have a vested interest in fudging or outright lying about information related to EPS in order to secure deals with companies in money management? How many times did you hear something like "Harley Davidson EPS beat analyst expectations because they bought back millions of shares outstanding" (this is the truth not a fun example). You didn't.
I do think somewhere in the range of Dow 10-14k is probably about accurate for the value currently present in the market. If you spent 10 minutes looking at balance sheets for the companies composing the Dow and S&P you'd be sick to your stomach too.
Stock buyback programs gave us the "unstoppable bull market" of the last decade. There has been virtually no value created since just after the recovery. Stop pretending. You're mocking him but you're the one with your face in the koolaid bowl.