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