Markets are extended

Alex Manzara points out that almost every market is extended. The exception is long dated treasuries. But all assets seem to be at multi-year highs or lows. Alex is a rates man, but he comments that oil looks cheap now, relative to copper, which everyone has bought because the future is electric, man.

His view is:

• long-dated rates have room to go higher,
• P/Es look stretched, even if they are supported by ZIRP,
• if one market corrects (e.g. the SPX wilts), can the others remain unaffected?
• silver is laggard, as is corn and soybeans.

All of this chimes with me, but I doubt if any of it is actionable.

Spacmania

Every man and his dog is launching a SPAC.