Bubble Alert: Stocks Are Trading Based on Accounting Gimmicks and Fraud, Not Growth

Bubble Alert: Stocks Are Trading Based on Accounting Gimmicks and Fraud, Not Growth | Zero Hedge

http://www.zerohedge.com/news/2017-04-28/bubble-alert-stocks-are-trading-based-accounting-gimmicks-and-fraud-not-growth

Re-posted from Zero Hedge.

Geoff

Geoff Says: I’ve contended for 5 years that the equities have no business being valued so high, it is based on false premises and worse…

This entry was posted in Fraud, stocks and tagged . Bookmark the permalink.

One comment on “Bubble Alert: Stocks Are Trading Based on Accounting Gimmicks and Fraud, Not Growth

  1. Before Trump won the election the PE ratio of the market was perhaps slightly high, around 17, where as historic averages are at about 15.5 or thereabout. There has been some market exuberance, however unfounded, that has inflated the S&P 500 PE to 25. This is indeed bloated but not outrageous nearly as during the tech bubble when the S&P 500 PE hit 44. But the real problem is that earnings didn’t follow this market move.

    We are at the close of the current earnings cycle so we won’t really know until about the middle of July if we are trending in the right direction provided that earnings reports emerge that justify our current market move upward.

    I now have a 5% hedge against the market in the form of an inverse fund, and I may ponder increasing that position given global tensions are escalating.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

* Copy This Password *

* Type Or Paste Password Here *

147,060 Spam Comments Blocked so far by Spam Free Wordpress

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>