- Why stocks may average 0% return (!) for the next decade
- The depressing data in
- Retail sales
- Consumer confidence
- Why the time to short the market is looking near
To be sure, there is one piece of fundamental information that has supported equity prices; and that’s corporate earnings.
Those have vaulted to new highs, despite the weak economic recovery, on the back of ultra-cheap borrowing (which reduces interest costs which are deducted from earnings), government deficit spending, and low household savings:
While the parabolic rise in corporate earnings is quite impressive, they are also historically unprecedented and certainly unsustainable.
When we look at the same chart seen above but on a percent change yr/yr basis we see that they have been slowing down remarkably and aren't that far above the zero mark…