Deluard points out that the level of stock gains we are seeing now is unprecedented, with one exception: the Great Depression.
There have been 12 major bear markets in the last century, according to Deluard, and stock prices never doubled in the ensuing rally after five of them.
“There is only one precedent in history for such a rapid doubling, when U.S.
Another troubling sign is that the recent, spectacular rebound in corporate earnings amid the wider economic recovery from the pandemic hasn’t led to a rise in share buybacks, which are still 30% below pre-pandemic levels, according to Deluard.
Meanwhile, the strategist says equity offerings raised a record $262 billion in the first quarter and Nasdaq insiders sold $41.5 billion in the past three quarters.
The strategist also points to inflation as a worrying sign.
This is a red flag for “trapped kinetic energy” that will be unleashed by steeper yield curves, stronger demand for loans, and other factors, according to the strategist.
Meanwhile, 553,000 Americans filed for unemployment last week, less than the 566,000 in the week prior but more than the 528,000 expected.
Canadian chip maker Alphawave confirmed plans to raise $500 million next month through an initial public offering in London with a targeted valuation of $4.5 billion.
— by reporting one of its best quarters on record.
Jack Denton is a reporter with Barron’s Group in London.