Weekend Insights

One of the key lessons from the failure of SVB is that with less artificial liquidity in the system, there will be less money for innovation...and thus the "innovation industry" is going to shrink quite a bit.

Investors are finally starting to realize that we're not going back to the free-money days of yore. It won't be too long before they also realize stocks cannot stay overvalued without that free money/liquidity.

The stock market is finally waking up to the fact that interest rates are rising to new highs and earnings estimates continue to fall....The line of least resistance is definitely lower for stocks.

The stock market is starting to wake up to the fact that bond yields are rising again and that earnings forecast are falling in a significant way. This means market volatility is going to catapult higher in the days and weeks ahead.

Last week, we got signs that the trend for Treasury yields has reversed (higher).....Thus, it's no surprise that other signs are pointing to an imminent change in trend for the stock market (lower).