Why the US has fallen into a 'bad news is good news' regime

Grant Bughman, senior equity strategist at UBS Global Asset Management, says investors in the US have begun looking for bad news in hopes that it will postpone the first rate hike

Recent performance of US equities has diverged somewhat from the fundamentals of both the US economy and corporate earnings. Thus far in 2015 earnings guidance has modestly disappointed, while the P/E multiple of the S&P 500 has expanded. Why?  After a strong end to the year from an economic standpoint in the US, it seems  we have now moved into a 'bad news is good news' market regime. Heading into 2015, the consensus was the Federal Reserve would begin to raise interest rates by mid-year as the economy picked up momentum. However, in the back of most investors' minds there has alw...