Submitted by Tyler Durden on 01/04/2012 14:11 -0500
recovery
Whether its our old friend Binky from Deutsche or Tommy Lee from JPMorgan, the uber-bullish permanence of these well-paid serial extrapolators seems to pivot critically for 2012's forecasts on one thing: multiple expansion. On whatever empirical metric the Bill Millers of the world look at, stocks are cheap - no matter the changing dynamics underlying the entire system that seems so obvious to the rest of us. As JPMorgan notes, even assuming a 15% earnings decline (possible:- in Q4 2011, the percent of negative S&P 500 earnings pre-announcements matched its 2001 and 2008 peak, and another sign: companies reporting before Alcoa beat consensus earnings for the last 9 quarters, while in Q4, they trailed estimates by 2%.) the S&P 500 is priced at the cheap end of history
http://www.zerohedge.com/news/equity-valuations-and-jobless-recovery?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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