Stein was the formulator of “Herbert Stein’s Law,” which he expressed as “If something cannot go on forever, it will stop,” by which he meant that if a trend (balance of payments deficits in his example) cannot go on forever, there is no need for action or a program to make it stop, much less to make it stop immediately; it will stop of its own accord.[2] It is often rephrased as: “Trends that can’t continue, won’t.”
Go read the full post on corporate profits here: http://scottgrannis.blogspot.com/2012/03/corporate-profits-continue-to-impress.html
Perhaps the market is already anticipating a reversion to the mean:
James Montier of GMO emphatically says reversion is inevitable. However, does that mean stocks will decline?
https://www.gmo.com/America/CMSAttachmentDownload.aspx?target=JUBRxi51IIBtbYEu0yy2D233
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Efficient Market Theory
Does anyone think EMT–say it fast five times as loud as you can, what do you hear–is like the BLACK KNIGHT?http://www.youtube.com/watch?v=dhRUe-gz690
No matter what the evidence or facts against the theory, it is only a flesh wound?