Negative Annualized Stock Market Returns for the Next 10 Years or Longer? It's Far More Likely Than You Think

"Market cheerleaders keep ratcheting up expected earnings, failing to note that much of the recent earnings growth is simply not sustainable.

Reasons for Unsustainable Earnings Growth

•Much of the recent earnings growth is directly related to federal stimulus that will eventually end.

•Much of the earnings in the financial sector are a mirage, based on assets not marked-to-market and insufficient loan loss reserves. The Fed and the FASB have repeatedly postponed rules changes for the benefit of banks and other financial institutions.

•Earnings in both the financial and nonfinancial sectors have margins outside historical norms, based on very low headcounts and outsourcing..."

at http://globaleconomicanalysis.blogspot.com/2011/02/negative-annualized-stock-market.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MishsGlobalEconomicTrendAnalysis+%28Mish%27s+Global+Economic+Trend+Analysis%29