For Anyone Who Still Thinks Earnings Matter
As Mike Tyson once ominously noted, "everyone has a plan until they get punched in the face," and it seems the rampage of equity bulls have some plan that many more prosaic fundamental analysis-based investors are unaware of (as we showed here). The 'punch' in the face will come; but in the meantime the following chart may be just the 'jab' that softens them up. As ThomsonReuters notes, of the 116 second-quarter earnings preannouncements given by S&P 500 companies, 93 of them have been negative, while only 14 have been positive. The resulting 6.6 negative to positive guidance ratio is the most negative since the first quarter of 2001. Nothing to see here, move along.
Of course - that doesn't matter - as we already know... fundamentals are irrelevant in a market of expanding hope-driven multiples...
because margin 'faith' is keeping the dream alive...
Charts: Barclays and ThomsonReuters
(h/t Brad Wishak At NewEdge)
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