Consumer confidence for stock prices remains high, despite mixed econonic data. Asset prices are rising faster than earnings, as optimism is extremely elevated. Equal Weight Index is underperforming the S&P; Bond prices are improving. If Fed Chairman Jerome Powell doesn’t appreciate the difference between financial and borrowing conditions, we must assume most investors do not either. The current combination of easy financial conditions and tight borrowing conditions makes monetary policy difficult for the Fed to balance. Markets' advance for past 5-months begs the question, what's next? The risk is liquidity, which trips up banks, which trips of the economy. Stocks are becoming "crowded." The challenge of working with Gen-Z, recently cited as the least reliable employees. Why employee productivity matters.
3:11 - Mixed Economic Data; Setting Up for Bonds 14:59 - Financial Conditions vs Borrowing Conditions 30:15 - The Liquidity Risk 44:18 - The Challenge of Working w Gen-Z
