Nothing Else Matters
There are still some who live in the fantasy world of fundamentals, earnings, macro business-cycles, and efficient markets... for everyone else, we offer the following seven charts to explain what really matters in the new red-pill normal... are you ready to find out how deep the rabbit hole runs?
As Global GDP growth expectations plumb new depths, world stock markets are surging to record highs...
From Japan...
To Europe...
Even Britain...
And finally the US...
With its 6th quarterly decline in earnings...
So given that it is obvious the stock 'markets' of the world are not discounting macro- or micro-fundamentals anymore... What is it that drives equity market capitalization?
Central Bank Balance Sheets - nothing else matters!!
The truth is sometimes too much to handle...
Charts: Bloomberg
Disclosure: None.
OMW it's Tom Cruz. Where's the nuclear bombs in volcanoes? Sadly as we see in Japan as growth cools and yields touch new lows asset bubbles are blown and then, eventually the stock market crashes from its lofty position to recover after lost decade after lost decade.
Given global central banks have hoisted this death knell on capitalism through socialistic managed economies without democratic say and without even trying to give capitalism a chance to develop its own solution. However, as we fall into this mess, please realize the corruption and problems aren't from capitalism, rather the renunciation of capitalism for centrally managed economies organized through central banks. Tsk tsk.