The by-line on Fox Business this a.m. was that stocks were down because of ‘DC grid-lock.’ Is this some kind of joke? How about stocks are down because they are more overvalued than at anytime in history by every single financial metric except the highly manipulated GAAP accounting net income calculations.
Speaking of which, the entire financial reporting apparatus has become one of the biggest jokes – if not an outright fraud – in financial markets history (with all due respect to the Ponzi scheme’s currently in operation at Amazon and Tesla). Target’s earnings report this morning is the perfect example.
Target’s stock ‘pop’ was being attributed by the cable tv financial ‘reporters’ to the fact Target’s sales and earnings per share ‘beat’ Wall Street estimates. That’s not hard to do because the highly exalted ‘beat’ is a rigged game played by company management and Wall Street, as management slowly ‘guides’ Wall Street’s penguins into a series of reduced ‘estimates’ leading up to the earnings release. By the time the results are reported, the earnings bar is low enough for a paraplegic to ‘jump’ over.
This post was published at Investment Research Dynamics on May 17, 2017.
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