I really like this quote, but with a caveat:
“The economy remains on government-assisted life support, and the government has been very successful in creating the illusion of economic prosperity. It is doing this to buy time and help preserve social stability as the adjustment towards housing deflation, consumer deleveraging, and chronic unemployment takes its toll on the growth rate in organic final demand.”
Its a reminder of just how broad the disconnect between fundamentals and the market can become.
Any portfolio manager who is overly reliant on macro economics and fundamental analysis will run into a timing issue.
That is why I find it so important to use additional metrics, including technical (breadth, volume) sentiment and liquidity. Otherwise, you can wait a very long time for the market to start reflecting the fundamental realities.
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.