Thread by @MebFaber, As my southern grandmother would have said, "What in tarnation?!"Below is a [...]

As my southern grandmother would have said, "What in tarnation?!"

Below is a list of my favorite charts demonstrating the US stock market is bubbly, bubbly, bubbly...

You may not agree, but it should give you pause...and at least reflect!

Any I missed?

This will be a big airdrop of charts so strap in!

First up, valuations...everyone loves to dunk on me for CAPE ratio valuations, but as you will see these are the least extreme indicator...

US stocks expensive (rest of world, cheap!)

https://mebfaber.com/2020/01/10/the-case-for-global-investing/

HT: @GlobalFinData

People love to justify high valuations due to interest rates, but at least historically, dark times ahead... https://mebfaber.com/2021/01/06/stocks-are-allowed-to-be-expensive-since-bonds-yields-are-low/

Stocks Are Allowed To Be Expensive Since Bonds Yields Are Low...Right? | Meb Faber Research - Stock...

There are a lot of investment sayings that get repeated by individual & professional investors alike. One I hear parroted over and over again is a variation of “high stock valuations are fine since...

https://mebfaber.com/2021/01/06/stocks-are-allowed-to-be-expensive-since-bonds-yields-are-low/

Median stock worse than 00

HT: @LeutholdGroup

Size and valuation level all time highs

HT: @hussmanjp

At least on a relative basis mid and small cap less expensive...

HT: @LeutholdGroup

Sentiment is euphoric...US investors expect > 15% returns

HT: @SchrodersUS

And average sentiment on II (since 1950s) has been high for last few years...which is usually awful time to invest

HT: @LeutholdGroup

Everyone expects stonks to be #1

HT: @barronsonline

which, given the flows, is a bit like this

https://twitter.com/MebFaber/status/1344091775850299397?s=20

https://twitter.com/MebFaber/status/1344091775850299397?s=20

People are increasingly getting pushed out the risk curve, or said more technically, doing really stupid shit.

HT: @business

maybe this time will be different but historically SPACs have been a $ incinerator...

smaller traders are YOLOing into options

HT: @Greenbackd

and despite GME situation, most stocks have very low short interest (largely due to short sellers going extinct)...

HT: @business

@Jesse_Livermore old favorite indicator, stocks as a % of household assets near or at all time high...

HT: @NDR_Research

why not add some leverage? romp up in margin debt...

everyone attracted to the expensive stocks too...

I'll add to this thread in the coming days, weeks, and months as things get sillier. In the meantime, you may like my old paper on tail risk and hedging the bad times, if they ever come again!

PDF

https://www.cambriainvestments.com/wp-content/uploads/2017/10/TAIL-Final-10.03.17-B.pdf

I love valuation charts where the turning points are obvious and get the big ones correct (early 80s cheap, late 90s bubble, GFC cheap, and now ¯\\_(ツ)_/¯)

via @LeutholdGroup with Price to peak cash flow, Green Book my single favorite monthly read!

$I love valuation charts where the turning points are obvious and get the big ones correct (early 80s cheap, late 90s bubble, GFC cheap, and now ¯\\_(ツ)_/¯)via @LeutholdGroup with Price to peak cash flow, Green Book my single favorite monthly read!$

Another one https://twitter.com/hanauermatthias/status/1357319244153815047

https://twitter.com/hanauermatthias/status/1357319244153815047

cannabis stocks are up, checks phone twice, over 50% in the past week.

https://twitter.com/michaelbatnick/status/1359930735537369093

https://twitter.com/michaelbatnick/status/1359930735537369093

https://twitter.com/dailydirtnap/status/1359889959721828362?s=20

https://twitter.com/dailydirtnap/status/1359889959721828362?s=20

https://twitter.com/JulianKlymochko/status/1359632234282553347?s=20

https://twitter.com/JulianKlymochko/status/1359632234282553347?s=20

https://finance.yahoo.com/news/crypto-mogul-bets-meme-investing-220000958.html

Crypto Mogul Bets on ‘Meme Investing’ With Millions in GameStop

(Bloomberg) -- Justin Sun, the 30-year-old crypto entrepreneur who bought $10 million worth of GameStop Corp. at the height of its Reddit-fueled rally, is predicting a paradigm shift in investing as...

https://finance.yahoo.com/news/crypto-mogul-bets-meme-investing-220000958.html

https://www.benzinga.com/news/21/02/19562249/5-celebrity-spacs-to-consider-shaq-serena-steph-a-rod-and-ciara

5 'Celebrity SPACs' To Consider: Shaq, Serena, Steph, A-Rod And Ciara

The SPAC market continues to grow with a record number of special purpose acquisition companies being offered and a record amount of money raised in January. That ...

https://www.benzinga.com/news/21/02/19562249/5-celebrity-spacs-to-consider-shaq-serena-steph-a-rod-and-ciara

https://www.cnn.com/2021/02/12/investing/baseball-cards-markets/index.html

'There's never been a time like this': Wall Street is piling into trading cards as prices soar

Ken Goldin has sold sports trading cards for four decades. What happened earlier this month still shocked him.

https://www.cnn.com/2021/02/12/investing/baseball-cards-markets/index.html

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