Chart Of The Day: This Is What You 'Believe' If You Are Buying Stocks Now

Tyler Durden's picture

Each and every day we are told by asset-gatherers everywhere that stocks are cheap, money-on-the-sidelines will 'greatly rotate', and now that any 'Taper' is good news as it signals the Fed 'believes'. However, it would appear that the market is either a 'hope-discounting mechanism' or a serial non-linear extrapolator; as, just for clarity, this is the 'hope' that equity bulls are buying currently about the next three years' earnings... what could possibly go wrong?



It seems the serial extrapolators are hard at work once again...

And as far as QE stoking inflation - still don't think it exists?


(h/t @AndrewYorks)

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ekm's picture

I don't know how long will it take for the brainwashed north americans to understand that this is all PROPAGANDA.


I just came back from the gym and the main topic between three women closeby was.......what shows should they follow,....Mad Men or some other show I hadn't heard about.


Dear slaves: Stop watching TV


fonzannoon's picture

I spent all day in Brooklyn down by the river. Playgrounds everywhere. new construction going up. Yachts and speed boats going up and down the river. People were practically throwing money at each other. Outdoor restaurants packed.

I am starting to think I have completely fooled myself and in doing so am missing out on being shit on with money by a unicorn. If something ever gives absolutely no one will see it coming.

ekm's picture

The absolute majority will never see anything coming though things are blatantly obvious. This is world history.

It has been like this, it is like this and it will be like this.

AldousHuxley's picture

mass delusion by definition means the masses are not awake to the reality.


If you want to rule the world, sell hope, buy power.

Hulk's picture

Someone should write a book with the title  "Extraordinary delusions and the madness of crowds "...

BringOnTheAsteroid's picture

It's already been done, it's called the bible.

mayhem_korner's picture



No doubt your view is based on an earnest study of it.  /s

Bearwagon's picture

Bullshit, the book is called "Propaganda", by Edward Bernays:

sun tzu's picture

The first one was called the Torah

The most recent ones called the Communist Manifesto and Das Kapital

The Shootist's picture

Never has the whole world been brainwashed into a fiat standard all at once though. BIG kaboom.

What I hate is that most people over 50 will suck Bernanke's balls to keep the paper game going. They're slaves to it.

The Shootist's picture

Its just all the clueless older folk I observe who are the Ponzi's cornerstone. They export suffering on the younger generations.

smlbizman's picture

i downed you.....i bet you there are more clueless older folks here than the young and informed......55 here

so you need to define older......and i do have my own theory that people that are stupid and old were also young and stupid....

ekm's picture

I see people in the early 60s at the gym in great shape.

I'm thinking 70+ would be considered ...old and I'm talking about the age only, nothing else

dunce's picture

I am 74 and am much wiser than i was at 40, but i know many in my cohort that are stuck on stupid. For example people that still blame republicans for obamas blunders, they are  beyond edification.

slyhill's picture

still stuck on the partisan paradigm tho...

Not My Real Name's picture

Wow. Leap to conclusions much? Whether you like it or not, even somebody who doesn't buy into the "partisan paradigm" must admit his observation is true. 





Bindar Dundat's picture

I am 63 and spend a lot of my energy trying to convince the Millennials to wake up and trample the roses.  

It's not about age; it's about wisdom.  YES we the baby boomers have messed it up-- yet it is the wise amongst us that can help the younger generation solve the problems.  The bankers are of all ages so beware of the greedy young as well.


God Bless .



artless's picture

I'm giving a +1 just for the fact that you might be the first boomer that I have seen that admits to being the ones that fucked it all up. Well, boomers and the so-called "greatest generation". You know the one that stood by while FDR destroyed this country and then lined up en masse like good serfs to die for Empire.

Yes the wise amongst any genaration have the ability to solve the problems but whether or not they have the will; that is the question. Until the older generations realise that they are comdemning their kids to a shithole mess of a future amd the younger gens like mine (gen x) open their eyes and see how totally fucked we are then nothing will change.

Peace Be Upon You

Diogenes's picture

What I wouldn't give if the present generation had a little of the political savvy and willingness to protest demonstrated by the boomers in the sixties. Obama has pulled shit Nixon only dreamed of, the boomers brought down Nixon, who is going to stop Obama?

DanDaley's picture

I asked my 62 year-old neighbor the other day what she thought of the stock market, and she said, "Just as long as it keeps going up."

Now, she's wealthy (the millionaire next door), but for her to even remotely consider a market melt, much less even consider the nominal (unreal) nature of her investments or what to do about them, is too much to comtemplate. That would involve a profound shift in her fundamental assumptions about the world, and that ain't gonna happen, not no way, not no how. She is just one of millions who are stuck in the sand.

Non Passaran's picture

She doesn't seem stuck to me...

The lack of financial disasters is going on my nerves.
I am feeling stuck in the sand.

sun tzu's picture

Those edumacated whipper snappers all voted for King Messiah, who is spying on them and sending them to the welfare rolls 

artless's picture

Check your premise. I'd wager that many did not vote and will not vote in the future, God willing to turn a phrase. And good for them. I refuse to take part in such a charade or endorse the existance of an illegitimate government, it's criminal wars, theft, murder, and and pretty much everything else.

And as I wrote above the boomers and the WWIIers all elected FDR (fascist) LBJ (fascist) Nixon, Carter, Bush, Bush, shall I go on?

Never mind the endless parade of Congressional shitbags the so-called "wise elders" placed in power. Ted Kennedy, Robert "KKK" Byrd, Shcmuck Schumer, Billary Clinton, John Boehner, John McLAME, and on and on and on.

I'd also wager that the boomer crowd voted at a higher rate than pretty much anyone when it come for voting for the manchild Pharoah Barry.


aint no fortunate son's picture

those eps numbers are doable - they're really only a function of how much debt companies take on to buy back shares. which is only a function of QE which won't get tapered "that much" by 2015... doesn't mean I'm not puking on my shoes tho

fonzannoon's picture

I'm paying $3.65 a gallon. Doc is paying $4.25. I am starting to wonder if TPTB are starting to isolate the states that are willing to comply happily with being disarmed, frisked etc. and they are letting the states that tend to put up resistance rot.

ekm's picture

I have an explanation


States cannot print money, only the Federal Gov can print money through the Fed.

Hence fresh money goes to the financial system. These states seem to be voting democrat all the time, though personally I see no difference mostly between dems and repubs.


States that have financial industry and states around these states make use of the freshly printed money.


The others are forced to cut government employement and raised taxes. Gas taxes are the easiest to increase.

Most of gasoline prices are taxes by different branches of governments.

proLiberty's picture

States have subordinate political jurisdictions like counties, cities, sewer districts, school districts etc. While only the privately-owned Federal Reserve Corporation has the monopoly license to print money, money in effect can be created by credit expansion. This is done every time a school or utility district uses its bonding capacity to issue debt for capital projects. It is also done when tax credits are negotiated and so on.

While different in many ways both money printing and credit expansion have the effect of increasing the amount of money in circulation without increasing economic resources that money represents.

ekm's picture

Fully agree.

There is no credit expansion now that everybody is over indebteded.

Divided States of America's picture

fonz, thats why i made the name Divided States of America. it will be coming when the americans wake up

artless's picture

Explain Texas then.

No income tax. Typical sales and gas tax. Moron for a governor. And yet without Texas the US would be in full on Depression free fall.

And by the way it's way more advanced than the NE states. Better roads, better tech, etc.

Hmmm, why is that?

Diogenes's picture

Oil wells? Political pull in Washington? What makes the rest of the country poor, makes them rich?

Blano's picture

"I am starting to wonder if TPTB are starting to isolate the states that are willing to comply happily with being disarmed, frisked etc. and they are letting the states that tend to put up resistance rot."

Dunno about that fonz, paid $3.29 today outside Dallas.

sun tzu's picture

It's the other way around. The 0bama compliant states are eating the shit and liking it. The highest gas prices in the nation are Illinois, Hawaii, and Clownifornia. 


I disagree. Here is Texas I paid $3.51 for premium yesterday.  Thats cheap compared to the coast and part of the upper midwest. 

Obama at heart is a coward.  He only is able to achieve what he wants because of the kleptocrats in the congress, media and lobbying industries and the bullying of the governmental agencies.  

Diogenes's picture

Obama is a community organizer, in other words a ward heeler.

Harbanger's picture

@ Fonz.  I'm sure they were also partying hard during the "summer boom" of 1929.  Black thursday came a few months later.

fonzannoon's picture

First off and most importantly, I was not in a van, but secretely wondered if someone would ask me if I was.

Harbanger, what I find crazy, I don't know about 1929, but they were partying in 2008, and before someone even bothered to tell them someone pissed in the punchbowl, someone spiked it again.  They are benefiting from inflation over there. All I saw were dollar signs going up in smoke everytime some 50ft bohemoth speedboat shot by. They did not seem concerned. Which just tells me it's QE4eva as the masses go broke and the few just let the good times roll.

I can see it ending tomorrow and I can see it outlasting me. Who knows.

espirit's picture

Prefered vehicle of serial killers, lol.

chubbyjjfong's picture

I totally agree Fonz. I am truly beginning to believe that I in fact maybe the crazy one. Everyone around me at work is buying investment properties and we earn only 50k! The Ferrari shop that I pass on the way to work has a sold sign on every single vehicle. The next door neigbours have replaced their roof, double glazed all their windows, extended, renovated.. the works. I think I may be the stupid one for not joining the party as its just me and my pile of tinned fish.

I don't talk about finance anymore as colleagues were starting to raise their eyebrows. They were just politely moving away with distant looks in the eyes. I don't know quite what to believe anymore. Just try to enjoy life, have fun with family and friends, be positive. 

ekm's picture

Only few want to talk about finance. It's a very killjoy activity.


However, if one doesn't follow it, that one will get cooked.

fonzannoon's picture

everyone wants to talk about it.

"How about that market eh!"

All day long

sun tzu's picture

I hear that all the time from my boss and my boss's boss

Missiondweller's picture

I feel the same chubby when I talk to friends her in SF where everything "A...fucking... OK" but I also have a financial blog and I sure do have a lot of readers worlwide, most in the US.

HeliBen's picture

They will figure it all out when the bills come do and they cant afford ramen. Been there and done that, not going back.

Credit... So much fun till you use it all up and cant make the payments and lose it all for pennies on the real dollars you spent.

Harbanger's picture

You're not crazy. Anyone buying investment properties earning only 50k is overleveraged, and crazy, and going to get screwed by the banks. Don't sell your tinned fish, they are going to buy you property when everyone else is broke. You can join the party after you prep. It took me 4 years to prep, now I'm having a grand ole time. I'm partying with the crickets. And there's no point in talking to anyone about finances or what's going on unless you know they are already awake. The next wave to wake up needs to have things affect them personally.

Non Passaran's picture

You aren't crazy as long as you're wondering about your beliefs.
But I am wondering the same so it could be that we're both crazy :-)
I've been getting the same blank stares from people, so I no longer discuss the economy and politics except with libertarian friends.