BCA's U.S. Equity Risk Indicator just hit red — historically, when this gauge reaches extremes, corrections follow.
The $SPX has been running hot. Valuation metrics stretched, sentiment frothy, positioning crowded. Classic late-cycle setup.
This isn't a crash call. It's a reminder: prices can detach from fundamentals for a while, but gravity eventually reasserts itself. Risk/reward skewed.
Markets don't top on bad news. They top on exhaustion and excess optimism. Watch the data, not the narrative.
The $SPX has been running hot. Valuation metrics stretched, sentiment frothy, positioning crowded. Classic late-cycle setup.
This isn't a crash call. It's a reminder: prices can detach from fundamentals for a while, but gravity eventually reasserts itself. Risk/reward skewed.
Markets don't top on bad news. They top on exhaustion and excess optimism. Watch the data, not the narrative.
