The market is fundamentally and technically overvalued to an extreme.
Beware the idea that the Fed has repealed the business cycle.
Instead they have created the biggest asset bubbles yet.
The unwind portends a nasty recession on the horizon.$DIA $INDU $DJIA pic.twitter.com/ZlKKbEtol8
— Kevin C. Smith, CFA (@crescatkevin) July 19, 2019
Interesting.
Without the effect of buybacks, S&P500 earnings have been flat for four consecutive quarters.
via @vixcontango pic.twitter.com/n2gnvgb6z9
— Daniel Lacalle Official Account (@dlacalle_IA) July 20, 2019
The US is the only stock market in the world to make new highs recently.
Every other G-20 index already peaked a long time ago.
Macro imbalances abound as fundamentals are deteriorating.
How long until US stocks catch up to the downside? pic.twitter.com/9HkTY3kuqP
— Otavio (Tavi) Costa (@TaviCosta) July 19, 2019
Eurodollar yield curve also as inverted as it was prior to the GFC!
Almost all Eurodollar spreads look as critical as the one below.
We must be close to an inflection point. pic.twitter.com/AnVzEInEM8
— Otavio (Tavi) Costa (@TaviCosta) July 20, 2019