Fra Zerohedge
During the month of October, three things happened that destroy any credibility that ‘believers’ had about the stock ‘market’ being an efficient discounter of fundamental earnings. Stocks began the month weak on geopolitical fears, concerns about the end of QE, and falling earnings; then Bullard unleashed his “but but but we might do QE4” words and stocks exploded higher. But a funny third thing happened as this malarkey occurred… analysts kept on slashing EPS estimates – in fact they slashed them by more than double the average EPS downgrade of any quarter in the last 10 years… So, if earnings are the mother’s milk of the market, central bank promises are the Human Growth Hormone, EPO, Steroid cycle of all-time highs.
