Any moment now we expect Paul Krugman to come out with an op-ed suggesting that not just Time magazine, but Charlie Munger is the latest to join the ZH payroll, following some unexpected comments by Warren Buffett's right hand man earlier today on CNBC when he said that "the U.S. is looking more like Japan given the prolonged low-interest-rate environment."
With "safety" stocks at all-time record high valuations and the energy sector trading at over 100x forward earnings expectations, it should apready be clear that a Christmas miracle is what equity bulls are hoping. However, as the following two charts expose all too well, the voyage to the hoped-for hockey-stick in earnings - you know the one that is predicted to occur every time mother's milk dries up - is rapidly falling down and to the right... This will not end well.
Remember Wednesday night... after Facebook crushed it...
Overheard behind the scenes at CNBC today...
US stocks may have already forgotten about the dramatic collapse in Japanese equities and the surge in the Yen which wiped out months of profits from macro funds (and certainly the latest GDP miss) with the S&P wiping out some 15 points in losses in 36 minutes, but for Japan the hangover from Kuroda's lack of action last night remains, because according to Mark Cudmore, former FX trader who currently writes for Bloomberg, the BOJ made a massive misstep. Here's why.
The BOJ's Massive Misstep
The tide has finally turned on what until recently was every sellside analyst's favorite stock.