No One on Wall Street Has the Guts to Say This

Markets moved lower for the fourth straight week after the Fed kept open the possibility that it will raise rates again in June. My money is still on a single rate hike later in the year and not next month, but the 12-headed Hydra known as the Federal Open Market Committee (aka The Committee to Destroy the World) said just enough to keep markets worried last week, thus the Dow Jones Industrial Average and S&P 500 are both up a mere 0.4% on the year. But, considering that these indexes are trading at nearly 20 times GAAP earnings, (and that GAAP earnings are complete bull because they are inflated by billions of dollars of bogus non-GAAP adjustments (see Valeant Pharmaceuticals Int'l Inc. [NYSE: VRX,] and Sunedison Inc. [OTC: SUNEQ]), this is better than investors deserve. What's more, have no illusions about the "vast cash hoard" Corporate America is thought to have on hand. As you'll see, that's a fairy tale... To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2016 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201. The post No One on Wall Street Has the Guts to Say This appeared first on Money Morning - We Make Investing Profitable .