Just hours ago I wrote about how market breadth is deteriorating at a historic pace as yields surge, flashing huge warning signals under indexes powered by just a handful of stocks.

Everything Is Fine, Except For Everything

Oh, and did I mentioned that after years of hype, trillion-dollar valuations and seemingly limitless spending, we're finally getting a better look at the economics behind the AI boom. And they are atrocious…

Meanwhile, the bond market continues to send a message that equity investors don't seem particularly interested in hearing. That message is that we are at the end of a decades long easy money fairy tale:

The Easy Money Fairy Tale Is About To End Violently

Forward rates recently reached a 16-year high, and one analyst thinks 5% Treasury yields could become the new normal. If that's right, the implications for valuations, leverage, refinancing and the entire post-2008 easy-money playbook are enormous.

Bonds Are About To Crash The Stock Market

And even if bonds start to recover…perhaps if an actual deal is reached with Iran instead of a bullshit headline, I still think the AI trade is on its last legs.

And let us not forget we are essentially seeing a bank run in private credit right now while the commercial real estate market also faces stress.