Warning: The yield from cash now exceeds that of stocks
Making the latter very unattractive at current levels
In other words, investors are more incentivized to hold cash than take risk in equities
The spread is back to levels seen in the 1980s and 2000
In the 1980s, equities… pic.twitter.com/3CwcTdHn2E
— Game of Trades (@GameofTrades_) October 24, 2023
Guy on CNBC: "This is normal. What is not normal was the Fed fixing rates for 12 years."
He's right, of course: now discuss what the unwind of 12 years of fake rates means for 12 years of stock market gains
— zerohedge (@zerohedge) October 24, 2023
U.S. Stocks now account for 61% of the $60 Trillion MSCI All-Country World Index, the highest level in history pic.twitter.com/rVqn7N492a
— Barchart (@Barchart) October 25, 2023
Noteworthy that he expectsthe Fed will have to provide liquidity again to the banks… And prefers that over raising capital further t.co/YIwXhdZQ6r
— Kelly Evans (@KellyCNBC) October 24, 2023
Mike Wilson always finds a reason to be cautious about equities pic.twitter.com/n1X6vCuiTj
— Michael A. Arouet (@MichaelAArouet) October 25, 2023