How long can the markets rise on falling EPS? The answer of course is not very long at all. We understand that the large cap stocks have been rising due to the fact that there has been record amounts of stock being bought back on surplus money supply to make the earnings per share look better, therefore keeping the illusion going that every thing is fine. This is why the Fed can not raise interest rates without bringing an end to the bull market. The macro data is so weak that the Fed can't even raise rates from zero to .25% without fearing that the system will implode.
Forward 12 Month EPS V change in price over 10 years. Yeah, this will end well right?
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