It’s like walking on thin ice—the market may look stable, but without enough liquidity, a little disruption could cause things to crack. It’s not a great spot to be in.
- Short Interest: As of January 31, 2025, short interest in the market has reached its lowest point in 15 years.
- Liquidity Conditions: The National Financial Conditions Index (NFCI) decreased to –0.65 in the week ending January 24, 2025, indicating looser financial conditions. However, the Adjusted NFCI (ANFCI) increased to –0.67, suggesting tighter-than-average financial conditions.
High-yield bond traders are among the smartest on Wall Street.
They definitely know what they are doing. pic.twitter.com/uOgztC7hbh
— Guilherme Tavares (@i3_invest) February 3, 2025
Dow theory
Fantasy vs Reality.
Wont be long. pic.twitter.com/n01SRBtuGM
— The Great Martis (@great_martis) February 3, 2025
How much growth, production and trade do you think was pulled forward anticipating the February tariffs?
If this is anything like 2020, the damage has already been done with production now ramping down or ceasing altogether.
— Financelot (@FinanceLancelot) February 3, 2025
The top 10% largest US stocks now reflect a record 75% of the US equity market. This percentage has surpassed the previous record set before the Great Depression in the 1930s. By comparison, at the 2000 Dot-Com Bubble peak, this percentage was at 73%. The market has never been so concentrated.
byu/IAmNotAnEconomist inFluentInFinance
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