{"id":56034,"date":"2020-12-16T15:39:15","date_gmt":"2020-12-16T20:39:15","guid":{"rendered":"https:\/\/olduvai.ca\/?p=56034"},"modified":"2020-12-16T15:39:15","modified_gmt":"2020-12-16T20:39:15","slug":"to-the-breaking-point","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=56034","title":{"rendered":"To The Breaking Point"},"content":{"rendered":"

To The Breaking Point<\/a><\/h3>\n
\"\"<\/a>If you thought fundamentals, valuations and earnings growth matter the joke is on you.<\/p>\n

In 2020 central banks have managed to do the unthinkable: Not only once again save investors from any damage in markets, but they intervened to such a degree that negative earnings growth is now the stuff of new record highs as well.<\/p>\n

After all, never before have we seen indices vertically catapult to new record highs 2 years in a row on the cumulative reality of no earnings growth (2019) and negative earnings growth in 2020 with a multiple expansion of a near 50% in just 12 months with an unemployment rate of near 7% to boot.<\/p>\n

As it\u2019s all unprecedented it becomes a question of sustainability:<\/p>\n