The Most Overvalued Stock Market In History

Hey, big guy:  Did you see where Factset focused on Amazon lowering its eps from positive 15 cents to negative 13 cents?  Amazon rallied.  I am beginning to understand investing now. The trick is to lose as much money as possible and either be loved by wall street or loved by the Fed (which I guess is Wall Street).  Anyway this debunks what I have been using for decades; looking for companies with accelerating revenues and earnings, real quality earnings, in which to invest.  Apparently the trick is to make a good sales pitch.  If you can’t dazzle them with brilliance, baffle them with bullshit.   -  comment from “Hal”

Yes, Hal.  AMZN is going to lose money in Q1.   They are projecting their operating loss to be as high as $450 million.  If they were forced to use the GAAP accounting standards used in 1990 – standards which were more stringent and realistic than are permitted today – FactSet would be forecasting a loss that is double the current estimate.

In our fraudulent markets – fraud which is “turbo-charged” by the massive Fed intervention – dozens of companies with little or no revenues now sport multi-billion dollar market caps.  Our stock market makes the Dutch tulip bubble look like a rational and efficiently priced market by comparison.

The valuation measures like price/earnings make it appear as if the current stock market is not as overvalued as the markets of 1929 and 2000.  But that’s strictly a mirage induced by the fraudulent nature of current GAAP standards.  If uniform accounting standards were applied across the board, the current stock market would be, by far, the most overvalued in history.

You can read the rest of this hear:   Investment Research Dynamics