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Re: There's One Missing Ingredient From The Market Rally 'Recipe' 

By: monkeytrots in POPE IV | Recommend this post (1)
Fri, 17 Mar 17 6:40 AM | 54 view(s)
Boardmark this board | POPES NEW and Improved Real Board 		Msg. 22787 of 47202
(This msg. is a reply to 22786 by capt_nemo)
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>> the analysts who actually cover companies and make earnings forecasts aren’t buying it.

Hmmm ... To the analysts - ignore the ticker at your own risk ... or in the more common vernacular

Money TALKS - BS walks.

The Money has been SCREAMING - it's worth more, and the analysts don't understand it.

Could it be ....

1.) The market is smarter than the analysts - and the market recognizes that RETAINED earnings have a high probability of INCREASING - through three (or more) means:

a.) Reduced Corporate tax rate to 15% from ??35%?? *that would be one HELLUVA increase in actual 'earnings retained'.

b.) A possible reduction in the CAPITAL GAINS TAX ?

c.) Possible reductions in INDIVIDUAL TAX RATES ?

Any of the above, all or combos, would account for a legitimate increase in demand for stocks (ie. higher prices)

-or-

2. The analysts really are the elite of the elite, (that's why they are all multi-billionaires rather than working for some rating/brokerage firm) and the rest of the market is nothing but a bunch of idiot sheeple blindly heading towards the cliff ....

Hmmm - which option makes more sense .... hmmmmmm




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The above is a reply to the following message:
There's One Missing Ingredient From The Market Rally 'Recipe'
By: capt_nemo in POPE IV
Fri, 17 Mar 17 6:29 AM 		Msg. 22786 of 47202

YA THINK ???? LOL


Via ConvergEx's Nicholas Colas,

It’s great when a plan comes together.

The recipe for not just today’s rally but the whole move since Election Day is easy. Take one part new Administration with expansive plans to boost the US economy. Add in 2 measures of a Federal Reserve confident enough in existing macro growth to boost interest rates. Add a dollop of money flows.

Seems perfect, but there is one thing missing: the analysts who actually cover companies and make earnings forecasts aren’t buying it. Just look at the latest FactSet numbers – bottom up estimates for the S&P 500 have fallen this year from $133/share to $131.28 currently. In other words, the confidence that has taken stocks higher is obvious everywhere except for earnings expectations. One bright spot: our monthly look at analyst revenue expectations for the Dow stocks shows that Wall Street has (for now) stopped cutting their views on sales growth. Bottom line: US equities can only live on hope for so long.


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