DC Lite #70

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1. Global Financial Stress Indicator. The GFSI "just exceeded its April 2021 extreme, showing the LEAST amount of financial stress since the Pandemic (February 2020)."

2. Corporate cash. US corporations were holding a record $4.4 trillion in cash as of Q3.

3. Stocks vs. bonds vs. Fed. "While the back end of the bond market has reacted to this potentially slower pace of cuts, equity valuations have not, creating a divergence that could be reconciled either via lower rates or lower multiples."

4. US super sectors. Index investors are overexposed to Tech and underexposed to Defensives and Traditional Cyclicals.

See: The Weekly S&P500 #ChartStorm ,Topdown Charts

5. Global sector fund flows. "Inflows to Tech funds ($2.3bn) bounced back strongly after getting only modest inflows last week."