DC Lite #400

1. Trump vs. Powell (I). We got an entire cycle before noon: "credible" reports of Powell's imminent firing were quickly denied by President Trump.

2. Trump vs. Powell (II). "One potential effect of a more politically-captive Fed is that they have even less influence over the long-end of the curve than normal: cuts to policy rates are offset in market pricing by rises in inflation compensation & term premia. So, less relief on mortgages & auto loans."

3. SPX vs. ATHs. "Since 1990, the S&P 500 was higher a year after an all-time high 82.4% of the time and up a median return of a very impressive 13.5%."

4. Overbought vs. oversold stocks. "The spread is narrowing between the percentage of overbought and oversold stocks."

5. SPX P/S. Roughly 10% of S&P 500 stocks trade at a >10x P/S multiple. The index itself is approaching its late-2021 peak.

ICYMI