Bravos Research breaks down a strange disconnect in the stock market, one that has only shown up once before in the last 35 years, right before everything came crashing down.
Key Points
Key Highlights:
- Stocks keep climbing to new highs even though uncertainty is near a 40 year peak, these two used to move together like clockwork, now they have split apart completely
- Behind the scenes the smart money is already running for the exits, bonds are down 15% and money market funds just saw their largest monthly outflow in over a decade
- Strip away the noise and look at actual corporate profits, they have gone nowhere since 2021, the stock market is rising on a foundation that has not grown at all
- The last time this exact gap opened up was right before the 2001 crash, when reality finally caught up with the market and pulled it back down hard
Takeaway Right now the only thing holding this all together is corporate profits staying afloat. The second they slip, there is nothing left propping up the illusion, and the fall could be sharp.
