Markets at Record Highs Despite Warning Signs in Economy
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Equity markets are at all-time highs despite deteriorating economic conditions in areas like retail sales, manufacturing, and housing.
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A handful of large tech stocks are responsible for most of the market's gains, raising concerns about the market being too narrowly focused.
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Consumers and businesses are choked with debt, and debt delinquencies are rising in areas like credit cards, auto loans, and commercial real estate.
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The federal budget deficit remains very high even with a relatively strong economy, leading to rising federal debt levels.
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If the Fed waits for an equity market break before cutting rates, they may have waited too long to engineer a "soft landing" for the economy.