Something’s Gotta Give

by Lance Roberts
David Stockman’s Contra Corner

Yesterday, media headlines rang out:

“The Markets Just Did Something It Hasn’t Done Since 1999.”

It’s pretty amazing when you think about it for a moment. All three indices hit simultaneous new highs at a time when earnings, profitability, and economic data are deteriorating.

While much of the media analysts continue to suggest there remains a bearish attitude towards stocks, price action of the markets as compared to fundamental data suggests quite the opposite.

The chart below compares the current S&P 500 to both earnings and the annual ROC in GDP.

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