Thursday, April 12, 2018

Bullshit Trap

Gamblers are eagerly anticipating the last source of liquidity being removed from the casino, with human history's largest stop loss immediately below the market...

"in light of the resulting volatility and the precarious position of indices, this could be the most important earnings season in nearly a decade...
the run up to the highs earlier this year was because earnings estimates were being revised upwards across the board."

"Despite all of that, however, the market has fallen dramatically, as traders and investors focus on future risks, rather than past performance and current economic fundamentals...the last two times forward P/E have declined this quickly were during the Greek debt crisis in 2010 and in the aftermath of Lehman Brothers’ bankruptcy in 2008"

"But they lived happily ever after, because this can't be 2008 all over again"

In other words, the last source of casino liquidity - stock buybacks - are about to be suspended. 

Any questions?

Banks go first

"Put it all together and you can understand why so many investors expect this earnings season to get us out of the rut that we've been stuck in"

"Investment banks like Goldman Sachs are getting a boost from increased volatility in the market"

"The subprime mortgage industry vanished after the Great Recession but is now being reinvented as the nonprime market"