Analyze This: Analysts Are Useless

The end of this week's e-letter will be Part Two of "Why P/E Ratios Will Not Rise As They Normally Do After a Recession." The whole piece will be a chapter in my new book, Absolute Returns. Of course, I will have to think of a snappier chapter title. But snappy or not, it is important you understand the dynamics that are working to hold down P/E ratios today, and why this means the long term secular bear market now in session will remain so for several years to come.

But first, and briefly, let's look at the economic scene. We quickly turn to just about my favorite trader and analyst, Greg Weldon, who has been right on target about the Fed for several years. Early this year, we both wrote that mainstream economists and the bond markets were wrong in pricing in a Fed funds rate increase of 2% for the year. It was as much a "slam dunk" trade as we have…