Submitted by Tyler Durden on 08/15/2012 - 10:10 Ben Bernanke Gross Domestic Product
undefinedEach and every day we hear, stocks are cheap - P/Es are low, money-on-the-sidelines, sentiment is contrarian-wise weak, 'it's an election year', and many other anecdotal BTFD-driving broker-based sound-bites. The truth will perhaps set you free. On both a valuation (trailing P/E and market-cap/GDP) basis and cyclical (long-term sideways trends, percentage holdings of stocks, historical election/decennial patterns, coincident-to-lagging indicators, and financials leading) basis, the fact is - the only drivers of bullish reasoning here is recent momentum, an implicit 'rationality/Bernanke put', and an implicit bias towards self-sustaining behavior by an entirely-dependent marketplace of professional commission-takers.
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http://www.zerohedge.com/news/killing-stocks-are-cheap-myth-once-and-all
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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