k_denninger

Strong Earnings Season (So Far) Has Pushed Markets Higher

Its rather clever to have a market that has had its "G" cut by half, doubling the PEG ratio, but it still goes up.

Howzat? Well, earnings were growing 16% last year. Now they're growing 8%. If you believe in efficient markets, the indices should be <i>declining<... not advancing.

The problem here is that our wonderful government schools teach people only to read headlines - not the actual data. For example, the jobs number this Friday. Looked somewhat-good, right? Wrong. The household survey showed we <b>lost</b>... a quarter-million jobs! But you have to read beyond the headline to know that......