Stock Market Warning Siren is Blaring, by Wolf Richter


Stop us if you’ve heard this one: the stock market is massively overvalued. Well, it is overvalued, and Wolf Richter got the stats and charts to prove it. From Richter at

Are we blinded yet by the brilliance of corporate earnings?

“Adjusted” earnings growth is 10.2% year-over-year in the second quarter, according to FactSet, based on the 91% of the companies in the S&P 500 that have reported results. The energy sector was a key driver, with 332% “adjusted” earnings growth from the oil-bust levels of a year ago.

The sectors with double-digit earnings growth: information technology (14.7%), utilities (10.8%), and financials (10.3%). The rest were single digit. Earnings in the consumer discretionary sector declined.

Revenues grew 5.1%, also led by the energy sector. At the beginning of Q2 last year, the WTI grade of crude oil traded at $35 a barrel. In Q2 this year, WTI ranged from…

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Author: Lisa the Infidel

I am an #Infidel - born and bred North Carolina.

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