by David Kranzler
Investment Research Dynamics
The stock market – specifically the S&P 500 and the Dow have become important propaganda tools of Fed/US Government. After all, a rising stock market means that investors are “discounting” future economic and earnings growth, right? As long as the stock market keeps hitting new records, any negative economic reports have to be invalid.
Of course, like everything else that hits the mainstream headlines these days, 90% of the time the opposite is the truth. We can call this “Bernays’ Theorem.” If you don’t know who Edward Bernays is, please use Google to look him up.
Corporate earnings have become mindblowingly fraudulent, which means that a fraudulent stock market is “discounting” fraudulent corporate earnings reports.