Fun Fact: The Russell 2000 index just hit record highs, but 60% of the debt issued by these companies are rated JUNK

Make sense?

US Stk Mkt at ALL TIME HIGH ("ATH"):
– 60% of Russell 2k has debt rated JUNK
– CAPE Ratio (p/e) at 33x (2nd highest ever) vs median CAPE of 15.6x (going back to 1800's)
– Price to Revenue at ATH
– Wage growth stagnant
– Consumer debt at ATH
– Inflation rising

This wont end well.

— CommonSats (@CommonSats) August 26, 2018

t.co/SU8AzuJImP

China slowdown pic.twitter.com/VuVNVKdV94

— Alastair Williamson (@StockBoardAsset) August 27, 2018

Chart: The relative attractiveness of cash vs. stocks continues to improve – pic.twitter.com/yvOQzrfkr4

— (((The Daily Shot))) (@SoberLook) August 27, 2018

Curve flattening is being googled the most ever. Will this time be different, as the economists say, or is the market on to something? We bet on the latter…

FX weekly -> t.co/7DsQsQUKs4 pic.twitter.com/UUCnbOVLf9

— Martin Enlund 🦆🚁 (@enlundm) August 26, 2018

 

h/t NikM755