Alphameister

Chinese Stimulus Will Stay to Achieve 8% GDP Growth

Hard to reconcile the assertion that household consumption is declining with the more demonstrable reality of extraordinary growth in car sales in China.

While China's central planners might not be handling this transition optimally, they seem to be doing a better job than their counterparts in most other countries. And they also have the financial wherwithal to persist with stimulus a lot longer than most other countries can do.

Why Don't Earnings Matter Anymore?

Agree fully with the thesis of the original article and with most of the comments. Eventually, value will prevail. Between de-leveraging of hedge funds who had loaded up on these stocks when they were momentum favorites, and speculators trading into oversold rallies by sectors that face long-term secular problems, GARP investors have suffered unwarranted damage lately. But strong and highly visible earnings growth combined with p/e expansion will make these stocks huge winners 12 months out.