A CAPE ratio of 37.0 feels like walking into a storm with no umbrella. The fact that it’s only been higher twice in history says it all—this is rare air, and it’s hard to breathe up here.
The stock market's CAPE ratio is clocking in at 37.0. It has only been higher than this twice in history. Good luck out there. pic.twitter.com/weXYlVFMOU
— Jeff Weniger (@JeffWeniger) January 21, 2025
It's all fun and games until Consumer Credit collapses.
This is updated weekly and looks exactly like Jan/Feb 2020. https://t.co/loBTMTxtqp pic.twitter.com/2bhjo7vn8c
— Financelot (@FinanceLancelot) January 21, 2025
Liquidity flood delays reckoning, but bonds may speak soon.
LEI Market Top Indicator (Update):
It's been a spell since I posted this chart showing how the US leading economic index of indicators has typically been a reliable harbinger for equity pain…Since 1980, secular tops in LEI have forecasted SPX crashe soon after. For those… pic.twitter.com/RLnlNRe3co— Gregorian Charts (@GregorianCharts) January 21, 2025