Two worlds, same market.
AI stocks? Party mode. Everyone's piling in, valuations don't matter, momentum is the only religion.
Meanwhile, down in the credit markets where actual solvency gets priced: spreads on junk-tier US companies just hit 12.15% — widest in almost 4 years.
Translation: lenders are demanding a huge premium to hold the debt of weak companies. They're scared. Default risk is real.
This is the split you need to watch. Surface looks fine. Nasdaq ripping, AI hype everywhere. But underneath? Cracks forming. The weakest borrowers are getting priced like they might not make it.
History lesson: when credit markets start freaking out while equity bulls party, it's not the credit guys who are wrong. They're the canary. Equity catches up later.
Don't ignore what the bond market is screaming just because tech stocks are loud.
AI stocks? Party mode. Everyone's piling in, valuations don't matter, momentum is the only religion.
Meanwhile, down in the credit markets where actual solvency gets priced: spreads on junk-tier US companies just hit 12.15% — widest in almost 4 years.
Translation: lenders are demanding a huge premium to hold the debt of weak companies. They're scared. Default risk is real.
This is the split you need to watch. Surface looks fine. Nasdaq ripping, AI hype everywhere. But underneath? Cracks forming. The weakest borrowers are getting priced like they might not make it.
History lesson: when credit markets start freaking out while equity bulls party, it's not the credit guys who are wrong. They're the canary. Equity catches up later.
Don't ignore what the bond market is screaming just because tech stocks are loud.
