In Saturday's note I wrote:
"...per today's Bloomberg article titled Bubble Deniers Abound to Dismiss Valuation Metrics One by One, considering the number of perhaps legitimate gurus who are capitulating (like it's 1999) to the notion that traditional valuation metrics simply don't matter, as, "it's different this time"..."Well, fund manager Julian Bittel is a legitimate actor who's not in the "deniers" camp:
"US equities are trading on a 1.9X market cap/GDP ratio, easily the most expensive levels on record.More importantly, only 3 times in the last 70 years have valuations been ≥0.2X above trend.-January 2000-June 2007-January 2021Today’s 0.29X ties 2000 extremes."
Then of course there are the likes of the ever deep-thinking economist Dave Rosenberg, who remains skeptical as well:
Speaking of "junky financial market", while today's 100-point finish for the Dow was, all things considered, impressive, it masked quite the "junky" session. Per the following from our own daily analysis:
NYSE up/down volume: 1437/3168
SP500 advancers/decliners: 206/299
Nasdaq Comp advancers/decliners: 572/2389
SP500 up/down sectors: 5/7 (down: financials, consumer discretionary, energy, real estate, tech, healthcare, materials).
Much to come this week in terms of economic data, stimulus proposals, etc.