Record-High Stocks and Federal Debt Square Off Against Oil, Gold and Japan
Stocks set new record highs! But so did government debt. And the Strait remains closed. Here's what comes next.
Source: Peak Prosperity
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DW NOTE
US equity markets hit all-time highs while federal debt passed $39.7 trillion and July's deficit alone ran $382 billion. Corporate earnings are at a cyclical peak driven substantially by one-time AI buildouts, not durable demand — and earnings are the most mean-reverting series in finance. The government is now issuing debt at a pace that makes additional inflation arithmetically unavoidable.