DIVERGENCES IN THE MARKET'S DRIVERS BEGINNING TO APPEAR
A PUBLIC SOURCED ARTICLE FOR MATASII (SUBSCRIBERS-RESEARCH & PUBLIC ACCESS ) READERS REFERENCE
MATA: PATTERNS
SOURCE: 03-19-19 - by - "Five Charts Every Stock Investor Needs to See Right Now"
MATASII SYNTHESIS:
- Stocks are pricing in economic perfection: an environment in which growth is high and inflation controlled,
- More and more “risk on” sectors are signaling that the stock market is topping.
- High Yield Credit lead stocks to the upside during this rally. It’s now stalled and is rolling over
- The same is true for leveraged loans (loans made to companies at risk of default). This sector peaked in late February and has already begun to correct.
- Every other risk asset is pricing in a weak economy that will soon trigger a significance “risk off” event
More and more “risk on” sectors are signaling that the stock market is topping.
High Yield Credit lead stocks to the upside during this rally. It’s now stalled and is rolling over.
The same is true for leveraged loans (loans made to companies at risk of default). This sector peaked in late February and has already begun to correct.
It’s the same story for housing.
Lumber.
And Copper.
Stocks are pricing in economic perfection: an environment in which growth is high and inflation controlled.
Every other risk asset is pricing in a weak economy that will soon trigger a significance “risk off” event AKA possible crash.
Choose wisely…
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