Here is how wall street modeling works.
Analyst to company? what will your earnings be in 2020?
Analyst goes to the bar with his friend, plugs in a couple numbers after a few cocktails, and then they all spit out the same price.
Group think is the reason that explains the street. It is why analysts have the same numbers and put out the same BS price targets.
Ie if company says they will make x in 2020, I can apply this EV/EBIDTA multiple or this PE or whatever…it’s all bull chit. So when the chit hits the fan, it hits the fan because everyone is smoking off the same crack pipe. Now, when they can get corporate executives to not only tell them the price , but communicate that they are in there buying back stock , because well, they have nothing else to do with the money, then its really on.
Well done Janet Yellen and Ben Bernanke. I know that you had to fund the federal deficit and that the money was going to leak, but now you’ve lost complete control of the markets. It is absolutely and totally unfettered.
And what are the heir masters hoping for that unleaded the mother of all liquidity bubbles… we will grow our way out of it…will that before or after the crash?