Disconnect Between Markets And Reality Hits Idiotic Levels

NEWS SUMMARY: Precious metal prices rose sharply Thursday on safe-haven buying and a weaker dollar. U.S. stocks rose above break-even for the year driven by tech sector gains as investors bet the U.S. economy would reopen soon.

ZERO HEDGE---"One month ago, with the S&P500 staging an impressive V-shaped rebound from the March 23 lows after the Fed unleashed a nuclear bomb of monetary stimulus, we showed that forward stock multiples had surged right back 19.4x, which was just above the level the S&P500 held on Feb 19 when it was trading at an all-time high above 3,330. In other words, at in the first week of April, stocks were valued the same as they were at the February all time highs. Fast forward one month when two things have happened: stocks have risen further, with the S&P rising just shy of 3,000 last week, while earnings expectations across the entire world have continued to slide...19.4x forward P/E is now even more idiotic...Deutsche Bank's Torsten Slok said: 'It is difficult to think about the E in the P/E ratio when the economy is shut down and half of blue-chip companies don't want to provide guidance on full-year earnings because of all the uncertainty. The Fed probably doesn't worry much about if the forward multiple is 18, 20, or 25, their clear goal is to support markets.'...The 'disconnect between markets and data is the largest on record'."