Top 5 Charts of the Day – August 13th 2020

#China’s stock market rally has lured people to invest more in wealth management and other financial products, leading to the increase in deposits at non-bank financial firms (fastest pace since 2015), according to CICC economists led by Liu Liu – Bloomberg pic.twitter.com/j04Vw4nX9I

— Christophe Barraud (@C_Barraud) August 13, 2020

Retail trading going global, via Credit Suisse: pic.twitter.com/l1U2CN12oO

— Tracy Alloway (@tracyalloway) August 13, 2020

#EU to become one of the largest issuing entities in Eurozone w/issuance for the SURE scheme and the EU Recovery Fund (RF) likely totalling near €850bn in coming years, Goldman has calculated. This suggests that EU
will be issuing at roughly €15-20bn/mth over the coming 5yrs. pic.twitter.com/Rz4CtmVN3L

— Holger Zschaepitz (@Schuldensuehner) August 13, 2020

On Stock Valuations:

This is my favorite metric, published by Value Line for nearly 50 years.

Since the March low, the Median Stock P/E has *doubled* – to a new record high.

Not a timing tool but historically, a LOT had to go right at these levels – mostly, things went wrong. pic.twitter.com/XWO1Kr9Wgr

— Macro Charts (@MacroCharts) August 13, 2020

Here is an extremely important chart:

Dumb Money Confidence (sentiment) is at the highest level since late-January 2020, 1 month before stocks peaked and crashed.

What's easy (chasing the hottest trend) is not usually what's profitable pic.twitter.com/gVVnqopSzE

— SentimenTrader (@sentimentrader) August 13, 2020