The stock market is definitely not the economy….

https://twitter.com/NorthmanTrader/status/1408048823809757191

"When the Fed engages in QE…they give a signal to the corporate managers that financial asset prices & financial liquidity is protected…this causes a greater & greater share of corporate resources to be channeled into the financial markets rather than into the real economy.." pic.twitter.com/eoogWlWfRO

— Rudy Havenstein, Senior Markets Commentator. (@RudyHavenstein) June 22, 2021

* S&P 500 HITS RECORD HIGH

* NASDAQ COMPOSITE INDEX HITS RECORD HIGH@CNBC https://t.co/TZvUEixQgz

— Carl Quintanilla (@carlquintanilla) June 24, 2021

Print more workers https://t.co/hqY5Mq9hsr

— Alessio (@AlessioTMAD) June 24, 2021

This is a really interesting chart. It looks like, perhaps, the pandemic created a shift to online grocery delivery that will prove to be more durable than some of the other shifts, which are proving to be more temporary. pic.twitter.com/8Swfk2SWBy

— Joe Weisenthal (@TheStalwart) June 24, 2021

The problem with the US inflation debate is that it's heavily ideological. Many of the commentators who espouse the low inflation view are also in the "debt is free" and #MMT camps, i.e. have a vested interest in swatting down any possibility of underlying inflation pressure… pic.twitter.com/p76RJWWlNC

— Robin Brooks (@robin_j_brooks) June 24, 2021

Everybody’s Everything Bubble: Shiller CAPE Ratio Climbing With Fed Monetary Stimulus

I call this the Everybody’s Everything asset bubble. Take a look at Robert Shiller’s CAPE (Cyclically-adjusted Price-Earnings) ratio. It has been rising ever since The Federal Reserve a…