The value proposition of this market now is that new, inexperienced, financially desperate traders are really excited that the market is being spurred on by massive amounts of stimulus. Japanification meets Robinization.
— Brad Huston (@BradHuston) June 17, 2020
If this isn’t the sign of a market top idk what is pic.twitter.com/aytaI7gowJ
— g (@garlandrg) June 17, 2020
Corporate bond yields are at all-time lows. Prices are at record highs.
The Fed is "leveraging" CARES funds (creating money) to buy these bonds FROM INVESTORS, at public risk. They are not guaranteed by the U.S. govt, nor backed by 13(3) collateral.
Looters and counterfeiters. https://t.co/kBTWwefyn5
— John P. Hussman (@hussmanjp) June 17, 2020
Rather amazingly, total corporate liabilities as a proportion of GDP hit a record high *before* the pandemic and emergency stimulus measures. Via @creditsights: pic.twitter.com/nZSumGAlxc
— Tracy Alloway (@tracyalloway) June 17, 2020