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Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Carnage awaits investors if this chart has anything to go by

Carnage awaits investors if this chart has anything to go by



The crew of doom and gloom has for some time been drawing lines between the point bubble and the current market climate. As stocks regularly hit record highs, those who predict a crash cannot find a breakthrough.

But hey, it's almost Halloween – maybe it's time to shine.

In this vein, noted bear Albert Edwards, global strategist at Société Générale, wins our chart for the day with this chart showing how earnings have diverted from the S&P 500 to a degree that is not visible , yes, 2000.


What does that mean? The casket waits, Edwards wrote in a note to customers over the weekend. He warned that growing inventories of technology were turning off from the reality of profits at a difficult time.

"An expanding profit recession will expose fraudsters of 'growth' and they will collapse as they misjudge 'growth' [price-to-earnings] with wrong forecasts [earnings per share]," he said. "Just like in 2001, investors will not wait to distinguish true 'growth' stocks from fraudsters. Investors will hit the entire sector and work it out later. "

There is no 'carnage' yet as investors seem to be in a buying mood.

The Market

The Dow

DJIA, + 0.49%

S&P

SPX, + 0.58%

and Nasdaq

COMP, + 0.86%

are higher. European stocks

SXXP, + 0.34%

also reported gains while Asian stocks

ADOW, + 0.22%

were reinforced by comments on Friday that the US and China are close to reaching a Phase 1 trade deal.

Bitcoin

BTCUSD, -2,66%

exploded over the weekend, breaking the 10,000 level before pulling back, trading just over $ 9,400 on Monday morning.

The buzz

Shares of Tiffany

TIF, + 30.36%

are set on fire, gathering about 30% after Paris-based luxury goods company LVMH

MC, + 0.21%

said it was in talks for a potential takeover. AT&T

T, + 5.05%

is up after the company outlined steps it will take to impose activist investor Elliott Management. Spotify

SPOT, + 17.47%

has grown after the music service announced that its CFO will retire beyond consumer numbers beyond expectations.

President Donald Trump said Sunday that a US military raid in Syria has led to the death of Abu Bakr al-Baghdadi, the shadowy leader of the Islamic State group. E.U. granted a three-month extension to Brexit from the UK.

California is in a state of emergency after officers ordered nearly 200,000 people to evacuate on Sunday due to multiple fires. PG&E energy company

PCG, -17.03%

cut off electricity to millions of people to prevent more areas from igniting.

The appeal

French economist Gabriel Zuckman says that a tax on the wealth of Senator Elizabeth Warren, who would impose a tax of at least 2% on households worth more than $ 50 million, would solve the economic inequality. "The snowball is getting bigger and bigger," Zukman told Yahoo Finance. "The solution is to lower taxes for the working class, but much higher taxes for the very, very wealthy."

Statistics

3.8%: This is how S&P presents itself on average during recessions since 1945, according to data from the National Bureau of Economic Research, cited by Ben Carlson of Ritholtz Wealth Management. Check out this chart and relax:


Quote

"Investors should always look at the stock market, as seafarers are concerned with the sea – a means to an end, usually benign but potentially deadly. Catastrophic losses are rare, but their risk never goes away, ”said Jason Zweig of the Wall Street Journal, on“ Putting the Gospel to Buy and Hold the Final Test ”. October 1965 Economy

October jobs for Friday is the largest to watch, with the ISM production index and Case-Shiller housing prices before. The Federal Open Market Committee is also expected to cut rates this week. As for Monday, the Chicago Fed National Activity Index reaches 8:30 a.m. Eastern Time, followed by a Dallas production survey, two hours later.

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