The economy and the market are NOT the same

The stock market and the economy are
not the same.
It’s sometimes difficult to sift through real profits
and real growth after companies massage their messages with pro forma earnings
and charges to present a more pleasant picture. Add the Grantham warning that
profits and margins are mean reverting, coupled with the deflationary
competition from Chindia, and you get a market priced for perfection.

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