Way back in 2007, the S&P peaked and then fell hard. A few months later (October) it made a higher high and then rolled over at the final top. Fast forward to now, and it's deja vu. The bubbles are all popping, most sectors have rolled over, every other country has rolled over in $USD terms. So how Skynet keeps making new highs is testament to excellent programming.
This mass delusion is running on clown antics and smoke and mirrors...
'Policy makers and market participants alike are watching as the gap between short- and longer-term rates narrows. Historically, recession has followed such inversions"
Getting back to the casino, as I showed yesterday, aside from FinTech, all of this era's bubbles have now imploded.
Within the major S&P sectors, only Technology, Healthcare, Transports, and Consumer Discretionary are at new all time highs. Energy, Financials, Utilities, Staples, Industrials, Autos, Materials are far from making new highs.
The leading sector for the past year in % performance has been Retail, ubiquitously viewed as a sign of the resurgent jobless consumer. For the past several years Retail was the most beaten-down sector and hence the most widely shorted.
So what is viewed as a renaissance in Retail has merely been human history's largest short-covering rally in what had been previously the worst performing sector.
The Dow which is heavily weighted with cyclical banks and industrials has yet to confirm this new high, and likely never will.
Globally, in $USD no other country stock index is at all time highs.
In local currency, India is leading:
China is lagging
