During his latest #MacroInsiders 'Ask Me Anything' session on @RealVision, @JulianMI2 shared his insights on an "intriguing chart"... Russel vs. #Silver as a ratio. Taking us all the way back to 2000 he explains why he's "reticent to buy anything yet in this environment."
At Jackson Hole Powell said "He sees little evidence of a “wage spiral”. Well he's not looking very hard! Non-Supervisory (aka not your boss) Average Hourly Earnings are rising at 5.5%. It's the highest in 40yrs and should help to sustain company pricing power and inflation!
The ratio between S&P Growth/Value indexes is barely off recent extremes. Yet ratios can correct in 2 ways: “nice” = value rallies & growth lags, “nasty” = when both drop, led by growth names collapsing. The chart reminds us of #dotcom extremes... the move *could* be “nasty”.