The simulated worldPosted: April 11, 2021
“Investors will not be able to quantify which aspects of growth, earnings and the economy are organic, and which aspects are the result of a simulated world where monetary and fiscal excess artificially create a facade of health and wealth,” he said. “There won’t be real clarity for a couple of years.”
from “Stock Bulls Bet It All on Earnings Guesses With Troubled Record” by Lu Wang in Bloomberg today. Also of note:
Hypothetically speaking, should earnings fail to catch up and the market’s multiple return “back to normal” — the long-term average of 16, the S&P 500 is at danger of losing a third of its value.