— Christophe Barraud🛢 (@C_Barraud) July 8, 2020
Corporate bond yields now at record lows even though debt levels have soared to new highs.
The Fed has created its own monster.
It can't stop buying assets otherwise the whole system will collapse. pic.twitter.com/5wIdsvTpN0
— Otavio (Tavi) Costa (@TaviCosta) July 7, 2020
Extreme lvls of optimism baked into equities amidst a widening degree of diverging mkt internals always warrants caution. Nasdaq Comp. peaked vs. TLT 7Q ago (peak cycle), & has since been posting a series of lower highs. The last time this signal triggered was early Feb. #Gravity pic.twitter.com/FLtaguSMjF
— Julien Bittel, CFA (@BittelJulien) July 8, 2020
Investors are behaving as if the Federal Reserve has already adopted yield-curve control. (It hasn't.) 10-year Treasury yields, adjusted for inflation expectations, have hit a 7-year low. https://t.co/CWCtQ0A3Dq via @johnauthers @bopinion pic.twitter.com/GjRhGb1Xul
— Steve Matthews (@SteveMatthews12) July 8, 2020
While markets soar, multiple expansion reaches new record-high.
Because even in optimistic estimates, corporate profits will remain 10% below the 2019 level by 2022.
We are basically buying an earnings and macro mirage driven by liquidity injections. pic.twitter.com/lRoZAmaelh
— Daniel Lacalle (@dlacalle_IA) July 8, 2020