QQQ - Market Breadth Has Become Beyond Problematic

2024-07-03 13:02:18 ET

Summary

• There are myriad reasons for investors to be concerned about equities, with the indices trading at all-time highs and the S&P 500 trading at near 22 times forward earnings.
• These include the deterioration in the commercial real estate market, continued inflation, and a massive and growing federal debt load.
• One of the biggest worries investors should have is lousy and worsening levels of market breadth.
• Similar trends have happened just before major bear markets like those in 1974 and 2020.
• How bad is the current market breadth?  We provide some factoids and worrying graphs in the paragraphs below.

Once a boom is well started, it cannot be arrested. It can only be collapsed ." - John Kenneth Galbraith.

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