"The errors of vanity of those who think they will beat the speculative game are also thus reinforced. As long as they are in, they have a strong pecuniary commitment to the belief in the unique personal intelligence that tells them there will be yet more."

- J.K. Galbraith on financial euphoria

Bonus chart - among the preponderance of daily warning flags I mention in the Dec comment, we saw this one on Wednesday - a general version of what I call a "phase transition."

The SPX is about 5% ahead of T-bills since the June one, but at record valuations, this seems risk deferred, not avoided.

New comment is up!
www.hussmanfunds.com/comment/mc24...

GOLDMAN: Market optimism “has lifted the share of the highest valuation pockets of the US equity market to levels only previously experienced in 2021 and the late 1990s Tech Bubble. .. The share of market cap represented by stocks with EV/sales above 10x has climbed to 27% ..” [Kostin]

☠️ "Russia has lost at least 700,000 killed and wounded since February 2022 and has "wasted" more than $200 billion on the war," — Lloyd Austin

Average private payroll gains of 96K past two months. Why Fed is easing

Well, here's something you don't see every day.

TOP NEWS TODAY🔝

🇸🇪🇩🇰 Sweden and Denmark will jointly finance the purchase of 40 CV90 for Ukraine.

🚀 Missile-drone "Peklo": speed of up to 700 km/h, distance over 700 km.

🇸🇾 Syrian army announced withdrawal from Homs.

Thanks, friends! 🇺🇦💗
☕️ buymeacoffee.com/MAKS22
✅ PayPal: maksmu24@ukr.net

QE era normalized rich asset markets. A stylized 60-40 portfolio is at the richest level outside of the recent pandemic ZIRP/QE era

about right