Source: Zero Hedge
“Profoundly Dangerous” Market Exposed As Hedges, Shorts Evaporate “This is a market looking through fundamental data, looking through corporate guidance and data points, looking through Fed guidance itself,” Lisa Shalett, the chief investment officer at Morgan Stanley Wealth Management, told Bloomberg Television . “It is a market that wants to go up in the short term. That is what makes it so profoundly dangerous. ” Blasphemy to most on Business TV, but it’s time someone from the ‘industry’ came clean as to the farce that is occurring in the US (and global) stock markets. For a sense of the decoupling – bottom-up – here are three major holdings compared to their 2020 Consensus EPS forecasts… Source: Bloomberg And top-down, stock prices are as decoupled from fundamentals as they have ever been… Source: Bloomberg And, by now, everyone knows why… Source: Bloomberg However, as Shallett warns above, the situation is getting a bit out of hand, where even The Fed may not be able to rescue any downturn.