What is amazing is how EXPENSIVE this market is relative to rates. The spread between the #sp500 Earnings yield and the 10-Yr nominal rate is at multi-year lows. Even after today's drop. Stocks just not dropping fast enough to keep up with rising rates. pic.twitter.com/3FVZsx2uwv
— Michael J. Kramer (@MichaelMOTTCM) September 13, 2022
You think the equity markets have been bad…? Well, the equity outflows have not even started yet… large outflows is normally a prerequisite for a low to form.
The longer rates stay high, the longer we’ll see downside momentum to earnings revisions. If earnings estimates for 2023 ($244) don’t change, there is only a 2% gain into year end from EPS from current NTM estimates. Anything beyond that must come from P/E expansion. #macro #EPS pic.twitter.com/vTDvphUARW
— Kantro (@MichaelKantro) September 13, 2022
Individual investors bought 2B during yesterday’s selloff – WSJ pic.twitter.com/r63lNwwSVc
— 🅰🅻🅴🆂🆂🅸🅾 (@AlessioUrban) September 14, 2022
Still VERY possible to see the pre-Covid $SPX highs at 3,390 before year end. If not, high probability in first quarter 2023. Fed pushing economy towards a recession it won't be able to get us out of, as inflation will remain sticky at 4-5% longer-term. #StockMarket #Recession pic.twitter.com/BkUyj0yRpf
— Gareth Soloway (@GarethSoloway) September 13, 2022
IEA: WE ARE SEEING THE BIGGEST DROP IN CHINA OIL DEMAND IN OVER THREE DECADES.
— Breaking Market News ⚡️ (@financialjuice) September 14, 2022
Eurozone factories suffer the biggest output fall since the pandemic hit as the energy crisis drags production to a halt.
Now huge companies might become nationalized, and governments are scrambling to try to avoid a liquidity event.
This is what a chain reaction looks like.
— Gold Telegraph ⚡ (@GoldTelegraph_) September 14, 2022
The IMF Managing Director said today that big creditors must work to prevent a debt explosion.
Has she looked at global debt lately?
$300 trillion.
— Gold Telegraph ⚡ (@GoldTelegraph_) September 14, 2022
h/t silvertomars