DC Lite #159

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1. Stocks vs. bonds. "Since 2022, inflation concerns > growth concerns. Thus, rising bond yields were behind every significant equity selloff. At least for a little bit, growth concerns will be > inflation concerns, which means there is a window for bonds to diversify again."

2. BofA Bull & Bear Indicator. The indicator increased "to 6.3 from 6.1, highest since March, driven by inflows to EM stocks & bonds, improved global stock breadth, less S&P 500 hedging."

3. Outliers. "Over the past three weeks, we've seen two unicorns in the US stock market: generational divorces between what the stocks in S&P 500 are doing compared to the performance of the index itself."

4. New highs-lows. The number of stocks making new highs relative to new lows is expanding across timeframes.

5. SPX vs. cuts. "Interest rate cuts have not historically meant a 'slam dunk' recession call. Sometimes a cut is just a cut ... There are even some instances where we did have a recession (red lines) but stock market performance did not go negative from the time of the first cut."