Just forwarding along some interesting charts from the last week or so. I tend to focus heavily on fundamentals and macro themes, however, today I’m also sharing some technical charts as they help to illustrate the severity of current extremes.
The first chart shows the explosion in margin debt since the pandemic. Speculation is running rampant and with an explosion in leverage.
The next chart shows the price-to-sales ratio of the S&P 500 at record levels.
The next chart shows the earnings yield of the S&P 500 lower than even the Dot-Com peak.
A technical chart of the S&P 500 showing a replicating wave pattern from Travis Kimmel (@coloradotravis)
This chart shows the S&P 500 index but also the percent of S&P 500 stocks beating the Index on a trailing twelve month basis. Notice the historical relationship between the two…
The next chart shows the Russell 2000 (U.S. small company stock index) along with its 200-day moving average…the Index is currently farther removed from its 200-dma since at least the 80s.
Past performance is no guarantee of future results. All investments maintain risk of loss in addition to gain.
Data from third-parties is believed to be reliable but accuracy is not guaranteed. Much of the data used to interpret the markets and forecast returns are often at odds with each other and can result in different conclusions. Many different factors impact prices including factors not mentioned here.
This is NOT investment advice but merely a general commentary. Individualized investment advice cannot be provided until a thorough review of your unique circumstances and financial goals is completed.
Views provided here are current only as of the moment of posting and are subject to change at any time without notification.