{"id":12096,"date":"2015-09-10T16:31:21","date_gmt":"2015-09-10T21:31:21","guid":{"rendered":"http:\/\/olduvai.ca\/?p=12096"},"modified":"2015-09-10T16:31:21","modified_gmt":"2015-09-10T21:31:21","slug":"why-dont-you-explain-this-to-me-like-im-5","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=12096","title":{"rendered":"Why Don\u2019t You Explain this to Me Like I\u2019m 5\u2026."},"content":{"rendered":"<header class=\"entry-header\">\n<h3 class=\"entry-title\"><a href=\"http:\/\/www.firstrebuttal.com\/why-dont-you-explain-this-to-me-like-im-5\/\" target=\"_blank\">Why Don\u2019t You Explain this to Me Like I\u2019m 5\u2026.<\/a><\/h3>\n<\/header>\n<div class=\"entry-content\">\n<p>Soc Gen\u2019s global head of research, Patrick Legland, has gone on record, according to a <a href=\"http:\/\/www.marketwatch.com\/story\/socgen-says-the-us-stock-selloff-is-overdone-and-these-3-charts-show-why-2015-09-07\" target=\"_blank\">MarketWatch<\/a> article yesterday as saying that the selloff in developed equity markets has gone too far, and he provides reasons to support his claim.\u00a0 First, he suggests the Chinese market rout has further to go but believes the fallout will be limited to EM and commodities.\u00a0 Second, Legland believes that the US and other developed nations are protected by \u201cwell-armed central banks\u201d evident by the 3.7% economic growth and the 5.1% unemployment rate and the Eurozone\u2019s 3 year low unemployment.\u00a0 Lastly, he suggests that due to central banks having created a bond market bubble bonds are no longer a safe haven and thus no longer a viable alternative to equities.\u00a0 I will point out that Leon Cooperman also discussed on CNBC yesterday morning the fact that there are no viable alternatives to equities anymore and so equities remain in the secular bull.<\/p>\n<p>Let me explain this to Legland like he is an 8 year old.<\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/player.vimeo.com\/video\/27060669\" width=\"500\" height=\"282\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>Ok like he\u2019s 5.<\/p>\n<p>While I admire Legland\u2019s optimism I simply do\u00a0 not accept his claims.\u00a0 They are full of tragic flaws.\u00a0 Allow me to colour code this for all those market \u2018pros\u2019 and PhD \u2018economists\u2019 who haven\u2019t been able to follow the premise over the past several months.<\/p>\n<p><a href=\"http:\/\/www.firstrebuttal.com\/wp-content\/uploads\/2015\/09\/Screen-Shot-2015-09-10-at-6.35.46-AM.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-2248\" src=\"http:\/\/www.firstrebuttal.com\/wp-content\/uploads\/2015\/09\/Screen-Shot-2015-09-10-at-6.35.46-AM.png\" alt=\"Screen Shot 2015-09-10 at 6.35.46 AM\" width=\"1142\" height=\"856\" \/><\/a><\/p>\n<p>The chart depicts that this rout has just begun.\u00a0 As EPS rolled over in the first half of this year, it signaled that \u2018<a href=\"http:\/\/www.firstrebuttal.com\/the-tide-has-turned-and-these-charts-predict-the-next-stop\/\" target=\"_blank\">The Tide has Finally Turned<\/a>\u2018 as I explained in a recent piece published Aug 2nd (just weeks before the selloff began).\u00a0 In that research piece I told readers to <em>\u201cprepare for an imminent equity valuation reset\u201d<\/em> and explained why it would occur.\u00a0 The above chart provides an explanation as if we are a 5 year old.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>&nbsp;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Why Don\u2019t You Explain this to Me Like I\u2019m 5\u2026. Soc Gen\u2019s global head of research, Patrick Legland, has gone on record, according to a MarketWatch article yesterday as saying that the selloff in developed equity markets has gone too far, and he provides reasons to support his claim.\u00a0 First, he suggests the Chinese market [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[964,5023,273,8886,8887,8282,500,4148,501,5220,8888],"class_list":["post-12096","post","type-post","status-publish","format-standard","hentry","category-economics","tag-cnbc","tag-eps","tag-equities","tag-equity-reset","tag-equity-sell-off","tag-first-rebuttal-blog","tag-market-collapse","tag-market-correction","tag-market-crash","tag-marketwatch","tag-patrick-legland"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12096","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12096"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12096\/revisions"}],"predecessor-version":[{"id":12097,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12096\/revisions\/12097"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12096"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12096"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12096"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}