Debt-service ratio drops, risks rise. Morgan Stanley warns of stock market rally ending; options markets remain optimistic, potentially overlooking risks.

The debt-service coverage ratio, a measure of financial health, has dropped significantly over the past year, indicating increased risk among leveraged loan companies. Morgan Stanley’s Chief Investment Officer warns that if corporate profits disappoint, the stock market rally could end. …

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“Soft Landing” Hope By The Fed Is Likely Optimistic

via realinvestmentadvice: The Fed’s “soft landing” hopes are likely overly optimistic. Such was the context of the recent #BullBearReport, which discussed the long record of the Fed’s economic growth projections. To wit: “However, there is a problem with the Fed projections. They are historically the …

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