Weekend Insights

Very expensive stock markets cannot get more expensive without significant excess liquidity. Will the Fed keep that flow coming now that the banking crisis is calming down?

The U.S. 10yr Treasury yield is on the cusp of confirming a change to an upward trend. That will not be good for today's very expensive stock market.

The regional banking crisis IS going to cause credit to contract. Credit contractions always produce slower growth. That's going to create headwinds for today' expensive stock market at some point soon.

The technology and bank stocks are starting to sniff out the big credit contraction that is coming. Caveat emptor.

The breakout in the SPX & NDX has been impressive, but make no mistake about it...this rally is being driven by liquidity, not improving fundamentals.