Port Congestion Could Be Worse Than "Lehman Crash", Flexport CEO Warns
https://www.zerohedge.com/markets/port- ... -ceo-warns
1. High market multiples; The PE on the S&P 500 is 26
2. Federal Reserve actions
3. Inverted yield curve
4. Black swans
Demand was overwhelmed by the supply, which pointed to more weakness ahead.
Given the significant increase of the supply together with the strong bearish momentum as shown in the price spread and velocity since 22 Nov, we could expect a lower low test of the S&P 500 to around 4450.
Based on the inverse proportion relationship between the US Dollar Index and the S&P 500 since 2017, this could point to more weakness ahead in S&P 500 given the current strength in the US Dollar Index.
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