Corporate Earnings & Revenues Destined to Disappoint in Q3 & Q4

With volatility at depressed levels, markets at “delicate” levels and thin trading, we would not get over confident here. Here is Biderman’s thoughts on the market here.

Many bullish Wall Street analysts seem to be expecting decent second half earnings and revenue growth for the stock market as whole and that is their justification for current stock prices. I say there is no way earnings per share and revenues will grow in aggregate over the second half of this year. I do not include financial stocks in this accounting. That’s because big bank stocks’ earnings per share are based upon the same myth that the current stock market valuation is based upon, and that is the Bernanke Put. The Bernanke put says the Fed will print enough money to buy existing loans, and then everyone lives happily ever after. (full reading here).

Video below.