The Traderszone Network

Published in TZ Latest News 28 February, 2015 by The TZ Newswire Staff

1987 Or 2015? The Gap Between Growth Expectations & Valuations Is "Ridiculous"

While the divergence between macro data ‘dismalness’ and equity price exuberance is by now well known, there is a greater threat looming to the rampapalooza that is underway. As forward Price-to-Earnings ratios have soared in the last year (aided and abetted – as Alan Greenspan explained – solely by The Fed’s largesse) so bottom-up earnings growth expectations have cratered.

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