Moreover, as you can see, even the author of the report is deluding himself into the ridiculous talks of valuations being super cheap while they are actually at historically high levels. Of course, the fact that markets have been overvalued for such an extended period of time — mid 1990s to now — doesn't help to have an objective view, and flaws the perspective.
Sept. 6 (Bloomberg) — The number of chief executive officers cutting profit forecasts fell 38 percent below average last month, even as the slowing economy pushed valuations to the lowest level at the start of September since 1985.
A total of 138 companies reduced earnings forecasts in August, compared with the average of 221 for the same month since 2000, according to data compiled by Bloomberg. At the same time, the Standard & Poor’s 500 Index slumped 5.7 percent, pushing its price-earnings ratio to 13.3, the data show.
“The bulls would say there’s more resilience,” Jeremy Zirin, who helps oversee $774 billion as New York-based chief U.S. equity strategist at UBS Wealth Management Americas, said in a phone interview on Sept. 1. “Companies aren’t seeing what consumers are seeing. The turmoil in markets and the weakness in some of the data was more of a reflection of policy makers’ inaction or lack of decisiveness both here and in Europe, rather than a true reflection of real economic prospects, which are not great, but also not recessionary.”
My opinion is that CEOs have become cheerleaders for the stock price of their company, being highly incentivised by massive stock options to try and keep the price high. So they will never say anything that might hurt the stock price, even if it means to hide the truth (polite way to say: they will lie when needed).