This Won't End Well

With "safety" stocks at all-time record high valuations and the energy sector trading at over 100x forward earnings expectations, it should apready be clear that a Christmas miracle is what equity bulls are hoping. However, as the following two charts expose all too well, the voyage to the hoped-for hockey-stick in earnings - you know the one that is predicted to occur every time mother's milk dries up - is rapidly falling down and to the right... This will not end well.

Expectations for 2016 S&P 500earnings started off at around $124 per share.. and are now at $117 (and the S&P is up on the year)


And the rolling 12-month consensus earnings expectations is reverting down once again as Q1 outlooks suggest anything but all-time highs for stocks...

h/t @Not_Jim_Cramer

So do you feel lucky?