This page has been archived and commenting is disabled.
Another WTF Chart
Forget the papered over cracks of manufactured EPS 'beats', or the talking-head anecdotes of one or two companies chosen to represent the 'earnings season' visibility. This chart from S&P shows the simple reality that operating earnings per share has been growing at an ever-decreasing pace since QE began. Of course, just as they were saying in June 2011, the next few quarters will see this growth re-accelerate...
(h/t Brad Wishak)
»
- 21789 reads
- Printer-friendly version
- Send to friend
- advertisements -
Are you saying that we should buy more?
Clearly nowhere to go but up from here.
Thank goodness for that red arrow -- I wouldn't have been able to follow the trend!
Some signs save lives, friend.
Icy when-, I mean, ponzi when debt.
Why would there be a concern?
I don’t think earnings quite kept up with stock prices in 1921 Germany, either.
It looks like we're gliding in for a nice, gentle landing. Unfortunately, there's a brick wall just off to the right side of the chart.
http://www.youtube.com/watch?v=M1owcncKCHg
Reality has become just like the "Careerbuilder" monkey commercials.
More like a minefield. Wall leaves you dead, and that's it. Minefield makes grand explosions hitting everybody.
Would not want to be last man outta stawkes
Anyone who thinks interest rates going up or qe reduced..,.. No chance...... Your best investment would be an ak47
AK47 isn't very accurate. I prefer Bushmaster.
Agree, they can't raise rates. They would have to stop QE and raise rates to match inflation just to get back to zero point. TBTF banks would default and take down the derivatives long before then. No choice but to print or reset.
Nice ski slope...Eddie the Eagle would love to attempt a new world record jump! Talk about the law of diminishing returns...ugh, that is plain FUGLY! How much time till the SHTF again?
Indeed, real growth had it's final coffin nail in the wake of 08/09, being long the market at this point is basically just a bet on continued devaluation to keep your real ROI at or very slightly above zero. Ie., you're basically choosing to have your wealth tied to the whims of the Fed. Good luck with that, folks.
What happens when QE is stopped ? Or can it be stopped ?
You remember the charts of what QE effects look like. The effect of QE follows the sinc function. The first wave makes the biggest dent, and diminishing returns following.
Can't happen as bond yields would spike and the gov would have to default...... simple as,............
Moar qe!
you got a typo...s/b Moar Kewee
I would recommend you ask that question of the heroin addict that stopped cold cold turkey ... but he unfortunately died. You can't take the needle out, you can only get a bigger needle.
MOAR /ES +100 Contracts! BUY BUY BUY!
http://www.youtube.com/watch?v=fyklt01lN_I
MOAR MOAR MOAR.
Bizarro market.
Thats what QE is for. If people had to actually use their brain and find a solid reason to hold this market, they'd be selling as fast as possible. QE gives them the false hope that there is a reason to be long this massively over-inflated "market".
Just buy and hold, 2022 is going to be a helluva year.
I don't think the Algos know the term WTF.
Perhaps not, but they sure know how to create WTF moments - like yesterday.
Very bullish that it is not declining at a faster pace.
Nothing a little CTRL-P couldn't fix.
QE started before 2011.
I call statistical fudging. Why not show 2008 to 2013??
ZH is really dropping the ball when it comes to unbiased journalism.
We might as well watch Jim Cramer.
I double-dog dare you to go watch Cramer and move on his marks.
I triple-dog dare you to dump all your money into CDs. =P
You are very welcome to do so. See-Ya, bye, adios, etc.
i prefer monkeys throwing darts than cramer
I prefer monkeys throwing darts at Cramer.
Best LOL moment of the day. Thanks McHilarious!
So companies are earning less?
It is proven in this chart?
Yet the market is up?
That would imply a growth stock type of environment. So is it safe to say the S&P is all growth stocks created by QE4EVA?
As I posted to Doc in a relevant way awhile back was:
A WTF chart (moment) nowdays is one that reflects fun-da-mentals.
Edit: Everything else is the "new normal".
Clearly, the bottom is in. Buy! Buy!! Buy!!!
If you extend the red arrow on the same trajectory, it will eventually point upwards. BUY !!
LOL it's almost as if QE "stimulus" is producing diminishing returns. Who whudda thunk?
+1 That's actually pretty good.
Seems like Bernanke and the Fed transformed this Japanese style. More debt, bailouts and spending. Oh, the lost decades.
MOARAAAAAA@@@@@@@@@@@@@
WWLJD? (What would Leroy Jenkins Do?)
There is no inflation. It'a all transitory.
Bernake said so...
In another WTF news...
Japan refrains from backing joint statement against nuclear weapon useWut??
Perhaps they've also been printing yen is Peshawar, since the ISI-CIA relationship has turned into such a gay soap opera??? WTF is right.
3 more years...
If this shit last 3 moar years, I'm gonna become a bluepill dealer.
Does my Medicare Part D cover bluepills? Gotta check that out...
KORO !
http://en.wikipedia.org/wiki/Koro_%28medicine%29
well, according to the thing I like best as of late for topping stuff, and although the us market is fucked. emu is at top trend, and uco has clused the gap 9although this has been harder. so we have our emu top today, time to at least lower holding and start shorting again
Oh this chart makes sense, as input prices rise with QE, but consts can't really get passed on to the 93% of folks getting less wealthy with QE
Buy, buy, buy!
http://www.youtube.com/watch?v=echAo3hmz3E
Americans are being kept asleep right up to the point of war...don't believe, just watch what's going on...war preparations..all over...I believe that a constant rise in the market is part of the sleep potion...now, go back to sleep!
Remove the industrial base. Any gripes? No. We're good.
Steal segregated customer funds. Any gripes? Just a little, good job Corzy. We're good.
Stuff a tyrannical imposter in the WH. Any gripes? Just those Christian Terrorists. We're good.
Slowly shit on the constitution. Any gripes? Meh, it's an old document. We're good.
False flag attacks with crisis actors, fake blood, fake parents, fake amputees to impose martial law. Any gripes? No. We're good.
These people really are asleep. Let's see if we can just confiscate all retirement acounts and pensions....
S&P Earnings Est for 2013
3/30/12 $117.91
6/29/12 $117.75
9/28/12 $114.96
12/31/12 $112.17
3/28/13 $111.14
current $109.52
By year end it will be under $100. That makes a 5% increase in 2 1/2 years during which time the market has rallied 50%........
lol, good stuff.
Yeah, and the rally is based on "fundamentals", and not FED cotton candy.
Yeah, but at the end of the year, at least the the estimate will be pretty accurate :D
Wait, what about the steady stream of Wells Fargo Advisors on CNBC today saying now is the time to get into stocks because corporate profits are up-up-up, followed by the non-stop Wells Fargo Advisors commercials?
Could it be they are fishing for dupes?
Hey, what are you trying to do...wake somebody up! ZZZZZZZZZZZZ
Just print $100 trillion and let's fucking party!
LOL!
Abby Joseph Cohen - Senior U.S. Investment Strategist for Goldman Sachs - saying just now on CNBC that this is the time to buy into equities!
"Don't sell in May and go away, buy!" she says.
"Individual investors shouldn't be so concerned about recent news because it is already baked into the market levels."
You know what that means you Muppets...SELL!!! SELL!!! SELL!!!
Yeah, she has the grandma making cookies kind of demeanor to calm us.
DOW is down...buy stawks!
Gold is down....trade in your shiny rawks for stawks!
DOW is up...buy moar stawks
Gold is up...crickets
Wondered when she'd peep out from her sell. I mean shell.
That awful person was on CNBC in March of 2000 with the NASDAQ around 5000 saying the same thing. She was I think with GS then, I vividly remember this. Why the hell isn't she unemployed? They're all paid actors.
sorry for pimping marketwatch today.
http://www.marketwatch.com/story/ge-capital-cuts-off-lending-to-gun-shops-2013-04-24-151034512?link=MW_home_latest_news
I hate G.E.
They are going to shift the money into prison technology, FEMA trailer technology, and security systems for government surveillance.
If there were a Nazi S.S. corporation of oppression they are in the top running.
Their appliances suck too.
Go beyond the S&P 500. Add up all the EPS for companies in the Valueline Investment Survey, and you will have the very same chart.
Quarterly profits from continuing operations are up a mere 2.67% year over year. The lowest rate of improvement since we theoretically emerged from the recession.
so zero percent growth is still growth..right?
YES - Seasonally Adjusted
Abby Joseph Cohen....severely wrong for decades. In 2002 she missed the NASDAQ by -60% and the S&P and DOW by double digits too. But when she is right (rarely) she reminds everyone. I would avoid her taut.
I about shat myself listening to ' Abbey Joseph Cohen' on CNBS, say that she still see's 10% earnings growth through the end of the year, and the Squid has raised it's earnings estimates. WTF?
AJC - like a cartoon character....
Since the Fortune 500 companies are buying their shares back with borrowed money shouldn't the earnings per share be increasing?
Selling into the "rally".....the patient has almost OD now....
Lost decades, Japanese style.
If anyones interested in some serious comedy. Check out the piece in Yahoo Finance titled "Paul Krugman Won" hosted by that criminal pump and dumper Henry Blodget. Not sure whether to be laughing or crying!
Cyprus is still unwinding, amongst other things, and they're declaring "Krugman Won."
That's like me surviving the first round against Tyson, by running around and screaming like a little girl, and saying that I won while sitting in the corner before the second. The truth will come out in the next round, be assured of that. hujel
but....isn't lower better????? Less people working. Housing prices declining. What's not to like.
lots of mindswap going
around
the studio
zohar me bubi falselight
two new jerusalem
two against the atonement
nice barry that was actually a little creative
http://www.youtube.com/watch?v=gMEyE2QDvzc
or is that a threat to the zohar lol
ah i see he needs no threat
with his farming
i am kept
alive for interior decorating and smithing
so now even zohar is too passe
ahaha so now i owe you and roth lol
a i see you are toning the hive a little
to turn full blast later lol
daring and what fail for bubi lol
interesting history lesson zohar i had no idea
but since we have to piece things together
but falselight gets creative
superhollywood blow the walls out
lol but is interesting probably
thani and falselight throwing anything jewish
and my productions under the bus lol
grow and attack the poles right lol
zohar and the geologist made me do it lol
bubi and the druids wont stand around you know
engineers lol
yes all of us can do charities lol
so you want to attack the string holding
us down
wow bubi's other puppet state going into spin
so its up to the 'druids'
find the leylines
the strings into and over minds
hey i admitted to turkey it was bad
why do you people think i was at the bottom of the ocean
hm
my bad
zohar wants kronos the timeline conqueror or something lol
weight of the world
how many souls
yes bubi's people took me out
a legit hit
the ink appears on the wall
cast 'growth scare' and 'ore' against druids lol
goodbye tokyo hello london
lol
something must be done about the sinkholes
your way or my way or
bubi you ratscum
london is better solved by you
china and i will take care of tokyo
and the surrounding
kim it is your stage
smash a looking glass
camping is a hit korea
nuke the moon
starship troopers is for real
springtime is green
Any more and we’ll have to get out and push.
Here too, though, people seem disinterested
in not throwing good money (trillions) after
bad (TBTF and billionaires harvesting us
with monopoly, risk filtering, gatekeeping,
pay to play, mountain clearing, radiation, etc.)
http://www.businessinsider.com/paul-krugman-is-right-2013-4
Certainly financial cable’s disinterested.
There’s this though.
http://www.fdic.gov/about/learn/board/hoenig/index.html
and this:
http://www.dallasfed.org/news/speeches/fisher/2013/fs130116.cfm
the title of which is:
“Ending 'Too Big to Fail': A Proposal for Reform Before It's Too Late (With Reference to Patrick Henry, Complexity and Reality.)”Well... what about some more QE then?
That is truly a sad chart. Particularly, when you consider how many quarterly results are likely cooked, due to the SEC being the portrait of regulatory capture. Hell, I wouldn't be surprised if the gov't didn't encourage companies to pad their numbers to help sell the current "Reekuvree."
When you steal people's money there is nothing left!
It's a chart showing quarterly change. It shows declining change, not declining earnings.
Leeeroooy Jenkins!!