Sunday, April 24, 2016

With Stocks Near All-Time Highs, 
Financial Stress Turns Negative
Financial Sense posted article highlights the "stress" in financial markets, as measured by the widely-followed financial stress indicators available in Bloomberg .. "The composite is directionally shaded to illustrate when financial conditions have gone from positive to negative and vice-versa. As you can see, financial conditions were favorable for the stock market, confirming their upward trend, until around 2014. Since then, financial conditions have become increasingly less favorable, diverging from the stock market's higher highs, and finally went negative in 2016. If this divergence continues and financial conditions deteriorate further, this will certainly raise a red flag that we are at or near a major market peak."
LINK HERE to the article

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