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. 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?
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?