From Jim Quinn of the Burning Platform blog:
"Investors
are now facing the second most extreme episode of equity market
overvaluation in U.S. history (current valuations on similar measures
already exceed those of 1929). The belief that zero interest rates offer
no alternative but to accept risk in stocks is valid only if one
believes that stocks cannot experience profoundly negative returns. We
know precisely how similar valuation extremes have worked out for
investors over the completion of the market cycle, and those outcomes
have never been deferred indefinitely. The only question at present is
how many grains are left in the hourglass."
The employment situation continues to deteriorate on a daily
basis as Challenger, Grey & Christmas has reported layoff
announcements by major corporations in 2015 that already exceed the
total announcements in 2014. This is the reality versus the BLS
5.1% unemployment rate fantasy. Retail sales, which make up two thirds
of the economy, are putrid and confirm the dreadful employment market.
Corporate profits among S&P 500 companies have fallen for two
straight quarters and are picking up steam in a negative direction, as
accounting shenanigans cannot disguise falling revenue forever. Earnings
per share estimates for future quarters fall on a daily basis.
Every manufacturing and services survey flash recession
warning. Despite propaganda from the NAR, government and the MSM, the
housing market is dead in the water. Major home builders
continue to report declining orders as new home sales are plummeting and
existing home sales, without NAR adjustments, show a negative trend.
