Another Leg Lower is Coming, but What Happens in 2021 Will Leave Traders Speechless

from Zero Hedge

In a recent report by Nordea’s Andreas Steno Larsen, the FX strategist looks at the recent surge in stocks and rhetorically asks “Happy days, right?”, to which his response is that he is not so sure, because “is it really feasible to CTRL+P profits?” (for those confused, since reality is now more absurd than the Onion, the answer is no).

Larsen then looks at the by now infamous chart of collapsing earnings and warns that “EPS may need to be revised down at least 40-50% YoY in a quarter from now, but it seems like most equity analysts have been sipping directly from the magic central bank spring (Certainly less strong than what Elon Musk had the other day) as they look for a “mere” -20% EPS growth this year.” To Larsen this is “historically naïve, sorry, optimistic.”

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