DC Lite #278

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1. Bankruptcies vs. spreads. "The rise in bankruptcy filings suggests that credit spreads may be set to widen from here."

2. NFP vs. SPX. "During the past 30 years, the direction of six-month change in the stock market has been the same as the job market nearly 80% of the time."

3. Inflation expectations. "It's the preliminary survey, but the Michigan survey for January shows consumers' inflation expectations (1-year and 5-years ahead) rose to their highest levels in a year, with both at 3.3%."

4. Funding spreads. "The decline in demand from professional investors suggests the potential for elevated equity volatility."

5. Mag 7 vs. Other 493. And finally, “price follows earnings, and relative price follows relative earnings, so watching the relative earnings estimates for the Mag 7 and bottom 493 remains key.”