Submitted by Lance Roberts via RealInvestmentAdvice.com,
There are two primary reasons Millennials aren’t saving like they should. The first is the lack of money to save, the second is the lack of trust in Wall Street. A recent post from JP Morgan, via Andy Kiersz, got me to thinking on this issue.
Earlier this month, JPMorgan’s Jan Loeys revealed that the bank is underweight equities “for the first time this cycle.”
Why? Well, allow Jan to explain it to you:
Lord Rothschild has issued a stark warning to investors, saying that 2016 is likely to be a very difficult year for the world economy. In his letter to investors, Rothschild warns, “not surprisingly, market conditions have deteriorated further…So much so that the wind is certainly not behind us; indeed we may well be in the eye of a storm.” On this basis, Rothschild highlights a “daunting litany of problems,” warning those who are optimistically sanguine about the US economy that “2016 is likely to turn out to be more difficult than the second half of 2015.” Lord Rothschild Letter to Inves
"The Fed has consistently missed every recession and every depression" says Wedbush's Ian Winer, as he explains to BNN why watching the bond market and not this week's FOMC "dot plot" is more insightful, "expecting the economy to be mired in modest growth with at most 2 rate hikes this year."
Three weeks ago, when looking at the incoming Q4 results, we were stunned by an unprecedented divergence: that of GAAP and non-GAAP earnings. We showed this difference as follows:
... and noted that while on a non-GAAP basis, the S&P's trailing P/E is a relatively rich 16.5x (over 17x as of today), it was the GAAP P/E that was troubling, because at just 91.5 in actual S&P EPS, this implies that the GAAP P/E of the overall market is now a near-record 22x.
We showed the delta between GAAP and non-GAAP as follows: