With the 4th quarter 2015 earnings reporting season in the books an analysis of the data shows that the gap between GAAP or Generally Accepted Accounting Principles of $87 in earnings per collective share for the Standard and Poors 500 Index aka reported earnings and Pro Forma earnings of $117 aka adjusted earnings to widen to .74 a level seen as the Dot-Com crisis heated up and again as the 2008-2009 financial crisis got underway at the end of 2007. As I’m fond of saying the Dot-Com era showed that we couldn’t trust the analysts, the accounting scandals of 2005-2006 showed that we can’t trust the numbers being reported while the post 2008-2009 crisis period showed that we can’t trust the regulators either. With the failure of MF Global in 2012 putting an exclamation mark on all of these. In fact all things considered our supposedly free, fair and open financial markets and economy function primarily based on command driven policy as at this juncture it is nigh on impossible to come up with an alternative explanation that doesn’t include the position of the plants or aliens.
This is Caleb Lawrence Registered Investment Adviser Scotts Valley Drive and Willis Road in the Scotts Valley Plaza, Suite 202 or call me toll free at 888-RICH PIG / 888-742-4744.
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