The Chart That “Amazes” SocGen How The Fed Has Broken The Market

Jon Alternative Media, Blogosphere, Economy, Fiscal Policies

6 years ago, nobody, and we mean nobody, would admit that the Fed was manipulating the “market”, and especially that subset which has served as a policy tool to boost consumer confidence: equities. Now, one has to look hard to find the braindead “financial pundit” (usually a econ Nobel prize winning economist or an English major) who still doesn’t get it. Ironically it has gotten so bad, some of the banks are now eager to show to the world just how “amazed” they are – in this case SocGen – by just how completely and totally the central banks have crushed anything to do with fundamentals.
From SocGen’s Andrew Lapthorne
Aided and abetted by QE, the last three years has seen the MSCI World Index rise by 38% whilst reported profits have risen by just 3%. This complete disconnection with fundamentals has been painful for short-funds looking to generate returns out of companies with weak business models.

This post was published at Zero Hedge on 11/13/2014.