Detached from reality: US markets soar to unheard of highs, yet unemployment, homelessness, hunger, foreclosures, and budget cuts are crippling the nation
The doom of this world approaches and many of you do not understand why. I want to tell you that it is because the people of this world, the economy, their education, their culture, and their way of rule has reached its limits. Being that it has reached its limits, it cannot go over into the “NEW”! It must die out.
White America seems to think that the election of Donald Trump will erase the reality of the time, the growing national debt, the time bomb in the bond/derivative markets, the growing reliance on food aid, the explosion in unemployment, the growing homeless crisis, the growing wealth gap, the growing racial divide, the growing international isolation of America and the rejection of American policies and a host of other time bombs that are set to explode.
Don’t believe the hype. There is no way out for America. She is close to explosion. The republic won’t survive regardless to how much hope white America has pinned on him.
The time is against her. The time is against them. World events are against them.
We know and see for ourselves that, “The false show of a glorious future that the wicked is putting on is at hand. We must remember Daniel’s prophecy, that “at the end of the war desolations are determined.” But before this happens Allah (God) will bless the people with a good time, as He did the people of the past, who wronged themselves and who did not pay attention to the prophet’s warning among them. Allah (God) destroyed them. They thought that they were fooling Allah (God) but Allah (God) surprised them!
He made the people rejoice for a short time, with a show of great prosperity and at the height of their great prosperity suddenly, He destroyed them. This is the merciful law that Allah has put in nature.
Allah (God) lets a dying person rally before the end. America is going to do the same. America will rally and people will think that she is going to have a great future, and then the end will come in that kind of time.
America’s end will not come while she is going around with her head hanging down and with heart aching and failing because of the things that are coming on her nation. No, she will be made to enjoy good times.
The stock market, going up, and lots of shares being sold — this makes any man think that everything is all right. But, this is only “The Lull Before The Storm.”-Chp.49(tfoa)
This is going on now. Look at how America is cooking her markets and how they have become detached from reality.
S&P 500 Earnings Stuck at 2011 Levels, Stocks up 87% Since
Grounded in some sort of new reality? LOL
The S&P 500 stock index edged up to an all-time high of 2,351 on Friday. Total market capitalization of the companies in the index exceeds $20 trillion. That’s 106% of US GDP, for just 500 companies! At the end of 2011, the S&P 500 index was at 1,257. Over the five-plus years since then, it has ballooned by 87%!
These are superlative numbers, and you’d expect superlative earnings performance from these companies. Turns out, reality is not that cooperative. Instead, net income of the S&P 500 companies is now back where it first had been at the end of 2011.
Hype, financial engineering, and central banks hell-bent on inflating asset prices make a powerful fuel for stock prices.
And there has been plenty of all of it, including financial engineering. Share buybacks, often funded with borrowed money, have soared in recent years. But even that is now on the decline.
Share buybacks by the S&P 500 companies plunged 28% year-over-year to $115.6 billion in the three-month period from August through October, according to the Buyback Quarterly that FactSet just released. It was the second three-month period in a row of sharp year-over-year declines. And it was the smallest buyback total since Q1 2013.
Apple with $7.2 billion in buybacks in the quarter, GE with $4.3 billion, and Microsoft with $3.6 billion topped the list again. Still, despite the plunge in buybacks, 119 companies spent more on buybacks than they’d earned in the quarter. On a trailing 12-month basis, 66% of net income was blown on buybacks.
Alas, net income has been a problem. By now, with 82% of the S&P 500 companies having reported their results for Q4 2016, earnings rose 4.6% year-over-year, according to FactSet. It’s the second quarter in a row of year-over-year earnings growth, after six quarters in a row of earnings declines.
For the entire year 2016, earnings edged up 0.4% from 2015. And revenue inched up 2.4% – in a year when inflation, as measured by the Consumer Price Index, rose 2.8%…..more here
Click here for reuse options!
Copyright 2017 Hiram's 1555 Blog
Like this:
Like Loading...
Related
