Loading ...FORTUNE MAGAZINE:
The End is Near For the Economic Boom
Growth will slow. The bull market will expire. Here’s why and what you need to do about it.
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Analysts Are In Fantasyland
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AGAINST THAT BACKDROP, Wall Street analysts seem utterly clueless in their optimism. Consider that over the past 70 years, U.S. corporate profits have grown at a 5.6% compound annual rate. During the greatest bull market in history, from 1982 to 2000, they grew at 6.5%. Yet Wall Street analysts believe the profits of the S&P 500 companies will rage ahead at a searing 15% annual pace—not for a few quarters, but over the next five years.
One of the all-time great investors, John Templeton, said, “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.” This sounds like euphoria, or what we might less politely term insanity.
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COUPLE THAT WITH DOUG KASS selling all his longs…and we may have an interesting autumn–I hope not, though, cause I don’t want the DEMs to win congress