Syz the moment

valuation remains a headwind for US equities (out of the 5 pillars of our investment process, valuation is the only negative one) . S&P 500 is expensive on 19 out of 20 metrics according to the Bank of America analysis. Some metrics are over 100% above historical averages. Shiller P/E and S&P 500 Market Cap to GDP are now 101% and 147% above averages. Source: Global Markets Investor, Facset, Bloomberg, BofA

Q2 marks the 11th STRAIGHT quarter of unrealized losses on investment securities for banks, a streak never seen before. The number of banks on the FDIC Problem Bank List increased to 66 and represents 1.5% of total. Source: Global Markets Investor

Inflation in August declined to its lowest level since February 2021, according to a Labor Department report Wednesday that also showed a key measure higher than expected, setting the stage for an expected quarter percentage point rate cut from the Federal Reserve. Indeed, while the headline CPI increased 0.2% for the month, in line with the Dow Jones consensus, the core CPI, which excludes volatile food and energy prices, increased 0.3% for the month, slightly higher than the 0.2% estimate. The slight uptick in core CPI keeps the Fed on defense against inflation, likely negating the probability of a more aggressive interest rate when policymakers meet next Tuesday and Wednesday. Here are the details: -> CPI 0.2% MoM (or 0.187% unrounded), Exp. 0.2% - in line -> CPI Core 0.3% MoM (or 0.281% unrounded), Exp. 0.2% - hotter than expected. Note that was the 51st straight month of MoM increases in Core CPI, and a new record high. The annual prints: -> CPI 2.5% YoY, Exp. 2.5% - in line. The annual CPI increase is the lowest since February 2021... -> CPI Core 3.2% YoY, Exp. 3.2% - in line Last, but not least, and perhaps most ominous of all, is that while the Fed is about to start cutting rates, Supercore CPI rose 0.33% MoM (see chart below), the biggest monthly increase since April, driven by continued acceleration in transportation services, which jumped the most in 5 months. Source: www.zerohedge.com, Bloomberg

Nothing about government spending. Nothing about national debt. Nothing about taxes. Meanwhile, the US debt clock is ticking... Source: Kurt Altrichter on X

The number of bankruptcy filings hit 452 year-to-date, the 2nd largest in 13 YEARS. In August alone, 63 companies went under, the 4th LARGEST since the COVID CRISIS. Most bankruptcies have been seen in the consumer discretionary sector. Source: Global Markets Investor

Source: David Ingles, Bloomberg

Source: www.zerohedge.com

Source: WSJ, Mike Zaccardi, CFA, CMT, MBA