ROFLMAO: SF Fed Forecasting Stocks To Get Cut In Half

Investment Research Dynamics

…over the next decade.  The San Francisco Fed issued a warning that the stock market will decline in the future because of the outflows from the retirement of baby boomers (sourced from Zerohedge):

The retirement of the baby boomers is expected to severely cut U.S. stock values in the near future. Since population aging is widespread across the world’s largest countries, this raises the question of whether global aging could adversely affect the U.S. equity market even further. However, the strong relationship between demographics and equity values in this country do not hold true in other industrial countries. This suggests that global agingis unlikely to create additional headwinds for U.S. equities (SF Fed Econcomic Research – link).

Note I’ve been using “ROFLMAO” a lot lately to describe the information coming from the Government and the Fed.   Really, all you can do is laugh.  The alternative would be to put a gun to your head and pull the trigger because the information and data being vomited by the Govt/Fed has become so retarded.

Note, according to the SF Fed:  the possible decline in the stock market has nothing to do whatsoever with the $4 trillion printed by the Fed since 2009 OR the fact that the stock market is the most overvalued that its been in the history of the U.S.

Let me explain the latter assertion.  Because GAAP (Generally Accepted Accounting Principles) standards have been completely perverted over the last decade, it’s impossible to compare current S&P 500 earnings with 1999/2000 S&P earnings (2000 being the widely and incorrectly regarded at the all-time high p/e ratio for the S&P 500).  However, I can assure you – and I would bet my dog’s life on this – that if we were to undertake the task of restating the current S&P 500 earnings using 1999/2000 GAAP standards, that the current S&P 500 earnings/per share would be at least cut in half.  Therefore, the current P/E ratio using 1999/2000 GAAP accounting would be higher than 1999/2000 and therefore the highest P/E ratio in history.  Thus, the current stock market is the most overvalued of all time using an “apples to apples” comparison.

This is the kind of analysis that you will NEVER hear from Wall Street analysts or from the financial media.  I doubt most Wall Street stock analysts even know what GAAP stands for.

It does not surprise me that the SF Fed issued this report on the stock market.  After all, the SF Fed was formerly headed up by none other than Janet Yellen, who has proven to be of significant mental impairment.  It therefore makes sense that the SF Fed is populated by a bunch of retards.