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Tuesday, February 14, 2017

Blaming the Fed/PPT for your short-sightedness

I found this absolutely fantastic piece of data, which shows the breakdown of returns in the largest bull markets. It shows how much the 5 different areas contributed to the total returns.

Some conclusions.
1)    Of the 9 largest bull markets including the current, 6 have had LOWER earnings growth than current. Meaning we had 6 bull markets where earnings increase were actually lower the current and contributed less to the total return.  Again, a stark reminder to all those believe the Fed has “managed” this market, that bull markets regularly occur with lower GDP/Earnings growth than we have had. 
2)    Dividend Yield, Valuation expansion and Inflation are middle of the pack.
3)    Valuation normalization was the second largest among the 9. That means that Stocks at March 2009 were second cheapest ever and hence normalization contributed so much.
4)    There is nothing unusual about this bull market except a giant ass fucking bubble in fear and pessimism perpetuated by sites like King World News, Zerohedge and the Looney tunes “System will collapse” idiots.

Full article can be read here

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