Doesnt Create Growth News Today : Breaking News, Live Updates & Top Stories | Vimarsana

The S&P 500 is at valuations higher than those in 1929 and rival those of 1999. Despite a recession, the index is 25% above where it was trading before the pandemic. The equity stampede is undoubtedly bullish about corporate earnings prospects and, by default, economic growth.   As the stock bulls party, bond investors are glum about future economic prospects. Bond yields are below where they were before the pandemic started. Current yields warn of paltry economic growth and little inflation in the future. Who has it right? (My colleague Lance Roberts touched on this issue in this past week...

Specifically, I stated: “The market is trading well into 3-standard deviations above the 50-dma, and is overbought by just about every measure.  Such suggests a short-term “cooling-off” period is likely. With the weekly “buy signals” intact, the markets should hold above key support levels during the next consolidation phase.”   As shown above, that is what is currently occurring. While the market remains in a very tight range, the  “money flow” sell signal  (histogram) are rapidly declining on rallies which is a concern. While it is confusing to have contradicting “ b...