What Happens Next?

Tyler Durden's picture

Remind us again - it's "Buy Low and Sell High?"

U.S. stocks have become too costly for mergers and acquisitions, according to Niels C. Jensen, chief investment officer at Absolute Return Partners LLP.

As Bloomberg reports, the U.K.-based investor cited the S&P 500 Index’s ratio to earnings before interest, taxes, depreciation and amortization, or Ebitda, in a monthly letter published Tuesday...

"Interesting M&A deals are likely to be few and far between" with the price-to-Ebitda ratio at more than 11, he wrote. The indicator peaked at 11.35 as an Internet-driven bull market of the 1990s was ending... it's at 11.27 today!!

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order66's picture

It's different this time.

 

 

Truther's picture

STFH (Sell The Fucking High)

OR

SHTF (Shit Hit The Fan)

OpenThePodBayDoorHAL's picture

It is different this time. A brand-new gambler has bellied up to the table, and this guy has magic chips. Forget the house, this guy can outlast any house in the world because he just snaps his fingers and more chips appear on the table in front of him. QE 4,5,6, and the Fed's balance sheet to $10T, $20T, hell why not $50T. Make no mistake these fuckers will do it, they just need a new name to bamboozle people, "Targeted Growth in Finance" program. TGIF.

https://www.youtube.com/watch?v=FQ1f7aOeEpc

 

fainzilberg's picture

you are right

but first there will be a crash. first they mark the profit then comes the "solutions"

 

besnook's picture

yea, there has never been a black wednesday.

evoila's picture

don't worry, interest rates are low, so it makes sense. oh wait.

demi urge's picture

If recent history is any guide the only thing that happens next is another ZH "What happens next?" article.

 

 

headfake's picture

dont ya know nothing can go down ever again

29.5 hours's picture

If it's all Trump's fault, all we need do is change the election results and the bubble can continue.

BocceBaal's picture

The dot-com bubble was all Bush's fault too. He's the only reason stocks crashed in 2000.

JDFX's picture

Looks like it's holding to trade higher at this time.  

 

 

The Saint's picture
The Saint (not verified) JDFX Jan 4, 2017 5:01 PM

I'm convenced!  It's either going to go up or it's going to go down.  Of course, the third leg of the stool is that it could just go sideways for a while.

There, that should clear things up for you traders.

 

Bill of Rights's picture

Long Miners cause everything else is craptastically expansive.

ParkAveFlasher's picture

Long miners 15 months ago.  Now, short miners.

Bill of Rights's picture

Good luck with that outcome...

Consuelo's picture

 

 

 If the potential for upcoming inflation has anything to do with it (hint: 'Honey, the cake is done'...), then fairly well anything of tangible value - with perhaps the exception of certain real estate, is going nowhere but north from here.

 

 

SDShack's picture

Bullish! Party like it's 1999!

vesna's picture

Still not exponential, strong buy!!!!!!!

hustler etiquette's picture

Deliver a 2 slide PowerPoint to potential investors. Fucc a 2 and 20, charge a 4 and 40. Short market. Everyone makes money. Close up shop. Go out on top.

dude duderson's picture

Bitcoin up, bonds up, gold up...all flight to safety getting bid while CBs and Johnny two calls buy equity futures

orangegeek's picture

yellen and the rest of the marxists are going to keep this pig pinned until after Trump's January 20th show.

 

then nigga can say he dun di a goo jawb wif-da eekawn-amee.

 

#AUDIT-THE-FED

natxlaw's picture

SELL SELL SELL SELL SELL

daveO's picture

"It's different this time!"

jamesmmu's picture

Dow isn't coming down, what can you do?

besnook's picture

forget the moon. we are going to mars......just as soon as inflation hits 20-30%

venturen's picture

The FED, BOC, BOJ, ECB, BOE, SNB, etc just need to print another $100 Trillion and negative 10% interest rates and we will be ok

FreeShitter's picture

CTRL-P has your back keep buying bitches

lester1's picture

This market is going much higher because of Trump's plan to lower the corporate tax rate. That makes companies more attractive and able to put to use capital. The market is also going up because of the trillions of dollars repatriated from overseas. A lot of that repatriated money will go toward stock BuyBacks.

 

So all those people saying the markets going down seriously need to shut the fuck up!!

new game's picture

"put to use capital", yea baby, moar stock buybacks. thunk dat tru...

QE4EVER's picture

How much of the trillions in QE dollars were allocated to capital investment? Practically 0..

WasNotWuz66's picture

No............. not so much the corp. tax rate as the UNDOING of FED. REGULATIONS, that by far are way more prohibitive than the silly ole tax rate.

EDIT:  I should say "IMPENDING" undoing of those prohibitive Fed. regs, but you knew that................

jughead's picture

what goes up, must come down...duh.

Yen Cross's picture

  Are you dyslexic?

  The $'s will be used to pay down debt,[money borrowed at ZIRP for the buybacks, and bond issuance] to enrich shareholders via dividends.

 The tax cut is a joke anyways. There's so many loopholes currently in corp. taxes. There's NOT one corp. that pays anywhere near the top tax rate.

This shit is so priced in.

 

yngso's picture

People are taking you seriously, you're at -10.

Mr Poopoo Guy's picture

what could go wrong ? Trumps' getting into office in 16 days!!!

bluskyes's picture

Everybody in the market is betting on the value of fractions - while only being able to see the numerator.

The denominator is hidden, and dictated by The Fed.

It's all bullshit.

new game's picture

the denomination is dictator fed...

just fuckin with the words..

falak pema's picture

The Duck sells his wife for 30 trillion to China.

Now that should help to make America great again. 

Whats a wife between two pardners to save the Greenback God?

Selling high a blond nugget bought low! 

swampmanlives's picture

It makes sense to compare the current market to the one one back in 2000

directaction's picture

Consider there is one slight difference this time: 
Since 2000 the US.gov has bounced 14 trillion dollars in rubber checks.
Ten trillion in the past eight years.  

yngso's picture

What could go wrong? Probably nothing...