"The explanations I’ve been hearing recently for why the stock market is weak do not meet the criteria for KISS.....The easy answer is the one that everyone seems to want to avoid, that no one wants to believe, least of all the Fed – the US economy is slowing and has been for at least a year....The slowdown means corporate earnings are falling and if the 4th quarter comes in negative – which it is so far – that will make three consecutive quarters of year over year decline. And that explains the drop in stock prices pretty simply."
"The markets are reacting to the weaker economic data just as common sense would dictate. The US dollar peaked nearly a year ago and is on the verge of breaking support; growth expectations drive currency values. Long term interest rates are falling no matter what the Fed might want..."
See:
http://www.alhambrapartners.com/2016/02/07/kiss/
