WTF Chart Of The Day: "It's All About The Earnings"

Tyler Durden's picture

"Earnings are the mother's milk of the stock market," is the oft-repeated anthem of a million marching lemmings; parroting the same phrase come hell or high-water in the dismal hope that they can gather moar assets-under-management, garner moar fees, and make moar TV appearances. However, as the chart below shows, we suspect perhaps given the reality of earnings expectations that the new normal mantra for stocks-for-the-long-term should be - "Central Bank liquidity is the PCP of the stock market."

 

it would appear the 'mother's milk' is souring...

(h/t @Not_Jim_Cramer)

 

and furthermore, since September 2011 earnings have been stagnant  - when a multitude of indicators (macro and market) began to decouple from stocks,

 

- driven almost 100% by buybacks...


(h/t @RonnieSpence)