I have been told I am too bearish, yet I have consistently given good reason for being bearish.
Mish is very worth having on your daily reading list. The quote he pulled today says what I've been saying since last summer very well...
"I'm surprised people still don't get this. They look at the headline statistics the government puts out and don't bother to think about the real information embedded in the numbers.
The crush on profits is beginning to take full force as companies are having more and more difficulty passing higher input costs on to consumers, as they're getting squeezed too.
This is the most important statistical relationship to stock prices by far. (emphasis mine)"
What did I read somewhere, 3 stocks are responsible for all the profits and the rest are down 30%. Three stocks keeps the market at this level? I don't think so, the squeeze on profit is crushing and business is going to be hard pressed to turn that around for years because the consumer is maxed out.