But what I don’t get is how tens of thousands of fundamentally oriented stock pickers worldwide can be this close to an earnings recession and willingly paying wacky multiples for legions of companies that are going to miss just like Broadcom just did. Don’t even get me started with how tight credit spreads are into the aforementioned catalyst. Will the liquidity be there when you need it? More importantly, will you have stored enough ammo to buy the companies you like at lower prices once the Fed “triggers” a #Quad3 pivot later this summer?
FYI, the Bloomberg Consensus NTM EPS estimate for AVGO just dropped -8.3% in a week.
I’m not sure whose job it is to get out in front of a move like that anymore, but perhaps instead of trying to game trade war tweets, G20 dinners, and the timing of Fed rate cuts, we all just go back to doing our day jobs? I, for one, find sequencing The Cycle to be a far more rewarding endeavor.