Shattered Dreams (Wile E. Coyote)
A couple of days ago, in "Prayers And Fundamentals", I updated a chart I call "shattered dreams".
It's often lost on market participants that corporate America was already in an earnings recession before the pandemic catalyzed the biggest slump in profit growth since the financial crisis.
If you think the equity market is a reasonably efficient mechanism and that stock prices reflect trends in earnings growth (i.e., if you accept two of the key assumptions behind the view that the stock market
Fascinating. Economists have got to give up on their rational behavior models.
Withdrawal never goes well. But there is no guarantee of recovery after an overdose.
Earnings?
Earnings?
We don’t need no stinkin’ earnings!!!
Earnings are so old skool.
Layoffs+MMT+reduced real estate overhead+reduction in consumer choice+technology advancements = gross margin/earnings expansion and an increase in productivity
If stocks are efficient are pricing the future, but unable to keep track of the present, can we still meaningfully call them efficient?