Confused as to how to position your equity portfolio? Need to BTFD? Unsure of what is going on now that Bernanke has left you alone in the dark with reality? Have no fear. These simple three charts, that perfectly describe the process top-down for arriving at a view on US equities, will allay all your fears of missing the next great bull market leg. Equity Prices track Earnings Estimates; Earnings track ISM; and Real-Time Surveys indicate ISM going down. @Not_Jim_Cramer provides this clarifying confirmation of what we noted yesterday [4] with regard to oil prices and slowing global growth (or a lack of printing) - equities appear alone in their hope for now.
1) Price Tracks Earnings
[5]
2) Earnings Track ISM
[6]
and 3) ISM Is Going Down...
Trade Accordingly.