Friday, May 13, 2016

The Bubble - Beating Analyst Expectations Is All That Matters

5/13/16

Read carefully. I just report what I read.

‘Zillow shares surge as quarterly loss narrows’.

CVS had a ‘healthy’ earnings report. Sales rose but earnings actually fell by 6%. How is that ‘healthy’? 

Match Group ‘beats forecasts - shares rise 10%’. Well, actually real ‘net earnings’ fell 73% and of the company’s ‘total assets’ listed at $1.9b, $1.3b of that is ‘goodwill’. Goodwill is basically fairy dust.

Perversely, it’s all good as long as the ‘earnings’ beat analyst’s estimates. Of course, Wall Street analysts are simply shills in the con. Earnings estimates are there to allow all players to pretend that all is well. When companies go bad, earnings estimates are lowered until they are on the ground if necessary. And, those estimates can be buried under ground so companies can simply roll over the estimates like a liquored-up wino and make everyone cheer. This is when companies become ‘buys’ because they didn’t lose as much money as analysts expected. Stock indices have been rising because earnings have been beating analysts expectations. Stocks are not rising because revenue, income, earnings, and employment has been rising. This is pure theatre and investors should read economic data very carefully with the knowledge that most of what they read is an out right lie. If it is printed in the US, there is no question it is a lie.

Statistics and ‘data’ are there for another reason. The FRB uses this nonsense to justify their destruction of the world so central bankers can rule everything. Does it strike anyone besides me as a bit dishonest to see the central banksters pop out of their caldrons to manipulate asset prices from time to time with a few words of deceit? We will never hear the truth as long as central banksters are in business. Thus we have the current economic bubble.

The Fed’s Lockhart calls June rate hike a ‘real option’. We all have a real option to stick our fingers in a blender and set the machine on ‘Puree’ but I wouldn’t recommend that either. Why a people who entertain the idea of personal freedom tolerates these lying sinister banksters I have no idea. 

And now for a little levity - courtesy the US Commerce Department. Yes, that would be the DOPE (Department Of Pathological Embellishment). Retail sales ‘data’ was reported by the DOPE today (5/13/16) and it was hilarious. Of course we all know the backdrop. Retailers have almost all unanimously reported declining sales. Yet, the DOPE wants us to believe otherwise so they said that April retail sales in the US increased at a 1.3% rate - the strongest gain in a year! Weeeee!!! One of the strong points of the gain was the increase in apparel sales. Supposedly apparel sales ‘surged’ 1%. Please feel free to have a belly laugh right now. Shouldn’t these liars be required to post a warning before they report such hilarious idiocy? Me myself, I almost choked this morning on my breakfast because I was laughing so hard at the absurdity of such a report. If one listened closely, one could hear laughter erupting all over the world.

Does anyone besides me ever get tired of being lied to by gooberment institutions?

Curiously, the stores that sell apparel reported something totally different. Macy’s is the largest apparel seller in the US and they said their sales were down over 5% and they were lowering full-year estimates to reflect sales declines of 3 - 5 percent. Ditto for the Gap and Kohl’s and Nordstroms. Several other retailers have declared bankruptcy since sales increased so much. Sporting goods even rose in the the DOPE survey. Sports Authority apparently didn’t get the memo as they too declared bankruptcy. 

Clearly the Fed would like an opportunity to raise the fed funds rate. Clearly they are writing the news to justify such. Clearly the Fed has been buying stocks and propping up asset prices to justify such. It is a sham. But, nothing will change as long as central banksters are allowed to infect economies with cancerous policies.

Sadly, the lying liars are left in charge by the profoundly ignorant populaces.

To follow up on my article of a few months ago regarding Hillary’s email server being hacked, the hacker, ‘Guccifer’, is still in jail. The story was reported several months ago by Russia Today. In the american press, the story is now ‘breaking news’. I wish the US had an actual media like Russia does. Of course, I do understand that under tyrannical rule the ‘media’ can’t actually report truth. Anyway, the Clinton campaign said of this story: ‘There is absolutely no basis to believe the claims made by this criminal from his prison cell.’

Really? Then why is he a ‘criminal’? Why is he in jail in the first place? Because he is accused of hacking Clinton’s server!!!!! Oh, and not that it matters, the Russians say they have a few gigs of Hillary’s emails. Not to worry. I’m sure they were all discussing what Hillary and Bill were going to have for dinner.

And one last thing. Look for the US fed note to lose another 4% or so relative to the euro before summer starts. This should be the impetus for the Fed to move. The two currencies would then reverse course. The next few months will be interesting. 




Disclaimer: The views discussed in this article are solely the opinion of the writer and have been presented for educational purposes. They are not meant to serve as individual investment advice and should not be taken as such. This is not a solicitation to buy or sell anything. Readers should consult their registered financial representative to determine the suitability of any investment strategies undertaken or implemented. BMF Investments, Inc. assumes no liability nor credit for any actions taken based on this article.

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