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How Detached Are US Stock Valuations From Gravity?
One, among many, criticisms bears level against 2023's equity rally centers on the notion that stocks are untethered from real yields -- that equities are ignoring gravity.
It's a compelling argument, but then again, so are quite a few of the other complaints bears keep on their "let me count the ways" list of reasons for despising a melt-up which has the S&P within ~250 points of January 2022's record.
As a reminder that no one needs, real yields can be kryptonite for risk assets. When th
Full employment, happy investors…. I like this view. Tomorrow is another day, and as we know, nothing happens till something happens.
Inflation was never gonna go away overnight. For markets and politics, inflation was hyper-relevant .
I hope there is a long run of a slow news days.
Your Keen eyes , Mr. H, will find something interesting to write about and be plagiarized.
I’ve seen a very similar chart showing how S&P 500 has detached from total liquidity, after tracking it very closely for some years.
Did anyone else think the end of grain and fertilizer shipments from Ukraine through the Black Sea would have rattled world markets much more than it did?