A Bubble in Multiples, Market Concentration, and ... Leverage!
High valuations and market concentration indicate low forward returns
Highlights
• High valuations and market concentration indicate low forward returns
• U.S. tariff revenue is covering less than a tenth of fiscal shortfall
• Fed cuts after September will depend on the labor market
• Dollar reverses course back below key trendlines
Key Takeaways
• Asia Remains a Preferred Region: All in, the Asia-Pac index rallied a nice +1.5% today, and the EM benchmark is on pace to do the same. The timing of this move couldn’t be better since our latest Strategizer showed Asia as our most preferred regional stock market — by quite a margin.
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