Brian Kelly

Equity Risk Premium Levels Suggest March Lows Will Hold

Not only the one time gains from banks, but the elimination of GM as a component in the S&P 500 has had a major impact on aggregate earnings.

Of course, there is never one indicator that can paint the whole picture, but I'll take any help I can get!


On Jul 07 06:11 AM Moon Kil Woong wrote:

> Interesting, but do you think the massive one time accounting gains
> the banks and financial institutions reported are real and should
> be factored into such a study? Personally, I don't think so. Of course
> reversing them out is such a pain. That's why most chartists tend
> to revert to oversimplification destroying the basis for their charting
> all together.
>
> There are probably tons of inconsistancies that should be taken into
> account with such studies and I have yet to see very many charts
> where the analyst has attempted to rectify the varagries between
> different time periods. They tend to make the same argument all the
> time, "It all cancels each other out." Somehow I don't think that
> passes muster in class, so why should it get a pass in the real world?