Learn How to Play the Rules Game to Cancel Your Mortgage
by Nick Hubble, Daily Reckoning.com.au:
Stock markets continue upwards. The economic news continues to get worse. Money printing makes up the difference. But in the end, reality always catches up.
Rick Santelli of CNBC pointed out that the American stock market is pricing in (expecting) 14% earnings growth for its companies (on average). It’s also expecting economic growth to be around 3-4%. The problem is, the two don’t match up, historically speaking.
Rick looked at past data and found some interesting figures. To get 14% earnings growth, you need GDP to grow around 7.6%. That’s double the expected growth.
So there’s going to be a surprise at some point. Either earnings will disappoint and stocks fall, or the economy will suddenly boom and stocks will go up. Aussie stocks will follow the American lead either way.
Read More @ DailyReckoning.com.au
2013-03-17 09:34:22
Source: http:///2013/03/learn-how-to-play-the-rules-game-to-cancel-your-mortgage/
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