Stocks Soar, But Is The Economy Really Winning

Ajouté : 2026-05-16

[00:00:00]I will note that high-yield junk has not made a higher high. So, of course, we are seeing some, I guess you would say, hm, divergence between the bonds market and the stock market exuberance at this point. Speaking of divergence, take a look at this, the American consumer, that is equal-weighted discretionary versus staples. Wow, I mean, discretionary is getting pummeled, guys.

[00:00:21]And this is pushing up now down to the demand lines. Now, it doesn't matter which version of these types of indicators you're looking at, they all look kind of weak. And this is showing that we have a stock market that is on the improve, but we don't have necessarily a economy that's on the improve. And we often look at this as a good synergy for showing that the economy is actually doing well. The last time I can think of that we saw really this, well, this type of I don't even know if we've seen this for quite some time, actually. I had a look through before, but yeah, basically, the market is is well, the economy's weak, and the market itself doesn't seem to care. just goes to show that what is right now happening, it's AI, and of course, it's that hamster wheel, guys. The big spend, you know, one invests over here, then they sell over here, and then they buy over here, and it's all in the name of AI, because earnings, earnings, earnings, and IPOs, IPOs, IPOs. These are going to be the important factors, at least we believe, uh, coming into the end of 2026 and midterm election years.