This May Be “The Scariest Chart” In The World

This May Be “The Scariest Chart” In The World

Were you looking for another reason to be wary of US equities? And by "another reason" I mean in addition to ridiculous multiples, the growing disconnect between stocks and the flattening yield curve, the fact that a handful of names are responsible for a historically disproportionate percentage of the YTD return, the possibility that a sudden spike in the VIX could trigger a harrowing unwind in systematic strats that have levered up thanks to artificially suppressed vol., etc. etc. Well look
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2 thoughts on “This May Be “The Scariest Chart” In The World

  1. What about a similar significant drop in M&A in the early 2014 time period without a corresponding drop in the S&P 500? There seems to be an overall correlation, but ….. don’t we need to see the S&P 500 drop, or at least a topping, before we say a correction is imminent? If we get a Black Swan event, such as Comey testifying on Thursday that he considered Trump’s appeals to go easy on Flynn to be a pretty clear Obstruction of Justice attempt, the S&P 500 may ignore the M&A drop for quite awhile as it did in 2014.

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