Monday, April 18, 2016

The Crack-Up Boom Phase

Global risk assets have entered a manic blow-off mode with prices going in the opposite direction from fundamentals...




Relative to the economy (GDP), stocks are now 72% overvalued...Today's forward P/E ratios have the veracity of horoscope predictions, a totally unsustainable illusion...



"We've been supporting profits growth with things like share buybacks and other unsustainable factors, and fooling ourselves into thinking that that's actually sustainable profits."

Wilshire / GDP (Indexed to 1973):




The question on the table is how long can global Central Banks keep all risk assets in the air simultaneously...when each rally is of shorter duration, requiring more coordinated intervention, and all risk assets are in various stages of implosion...



What a fucking joke...