Note: The Purchasing Managers' Index (PMI) is an indicator produced by Markit Group and the Institute for Supply Management of financial activity. It reflects purchasing managers' acquisition of goods and services. The headline manufacturing PMI is a composite of five of the survey indices: New orders, Output, Employment, Suppliers' delivery times (inverted) and Stocks of purchases. (Wikipedia)
Explaining The Market's Brand New 15x Forward Multiple
Submitted by Tyler Durden
Actually not really, but all one can do is laugh since in some centrally planned parallel universe, the entire world entering manufacturing contraction translates into a 4 year (and just shy of all time) stock market high…
Who needs stuff when one has paper. David Rosenberg's explanation:
Note that 13 of the 16 countries under our radar screen have reported their August PMI/ISMs and 100% of them showed contracting manufacturing activity in August – that is up from 75% in July and 73% in June. Yet again, the last time we saw a 100% dispersion in terms of a turndown in the global industrial sector was back in February 2009.
No worries: the academics running the world have it all under control.
To summarize: the central planning and market manipulation will continue in the face of the global depression until everyone who has not been assimilated into the post-Madoff Borg ponzi collective gives in, and morale that equities are the best investment since sliced bolts made in 1954 Stalingrad, returns.
