Chart of the Day (maybe the year)

Of all the charts that would trouble the thoughtful investor, this one might take the cake:

S&P 500 Profit Margins (yellow line), vs the S&P 500 Index itself (white):


That's hugely troubling, despite what history might say about it.

Well, now that I've mentioned it, what does history say about it?

Here's virtually the same setup late-2007:


Didn't end well:


Here it is in late-summer 2000:


Didn't end well: