Fund Manager: “It’s beginning to feel like the early stages of a Weimar-style blow-off”

Every day that passes by without a serious correction in the stock market marks another day that the entire stock market becomes increasingly dislocated from the underlying fundamentals.
It’s beginning to feel like the early stages of a Weimar-style blow-off.
Get ready for QE4.

 

Eagle

Submitted by PM Fund Manager Dave Kranzler, Investment Research Dynamics:

All ten sectors [of the S&P 500] have recorded a decline in expected earnings growth since the beginning of the quarter due to downward revisions to earnings estimates… – John Butters, FactSet

I guess declining earnings estimates for America’s biggest companies are the perfect reason for the S&P 500 to have popped 1.22% today.  The S&P 500, like has with Swiss watch mechanical precision for over three years, has bounced off its 50 day moving average and is hurtling toward another all-time high.

Meanwhile, by almost all economic reports not connected to the NAR or Government, the economy is beginning to collapse.  Has anyone besides me noticed that the everyday at least one new economic report is released that shows a decline which is compared with what happened in 2007-2009?

Here’s an example from today:   “Dallas Fed Collapses At Fastest Pace Since Lehman:”

Dallas Fed data has utterly collapsed – at its fastest pace since Lehman. Printing a stunning -17.5 (over twice as bad as expected -8.5), this is the 4th miss in a row (and increasingly worse misses).  LINK

Goldman just announced that it is lowering its Q1 GDP to just .8%.  After netting out inflation, that implies that the economy has declined.

Every day that passes by without a serious correction in the stock market marks another day that the entire stock market becomes increasingly dislocated from the underlying fundamentals.   It’s been beginning to feel like the early stages of a Weimar-style blow-off.  Get ready for QE4.

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