“I’m seeing an S&P 500 that has priced in 30% profit growth next year. We were priced for Armageddon and now we’re priced for nirvana but the truth is probably somewhere in between.”
As far as Gluskin Sheff chief economist David Rosenberg is concerned, stocks can’t support their current gains.
Here’s why:
- Financial stability remains uncertain in the post-bubble credit collapse
- Wages are deflating at a record pace
- Three quarters of the corporate universe is showing no revenue growth to speak of
- Only one third of ISM industries posted growth in July with barely 1 in 10 adding to payrolls
- Strength in the private sector stems largely from stimulus spending, it’s not organic.
http://www.cnbc.com/id/32315896
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