00:00We are heading into the worst seasonal part of the year, Leslie, here in September and October, historically.
00:07But I kind of think, I just think there's a number of vulnerabilities that's been built up in this market.
00:13You know, I look at the price of the S&P 500, it's 60% above its historic post-World
00:20War II trendline average.
00:21It's only been higher at the dot-com top.
00:23Earnings per share on a trailing 12-month basis are currently at a record high relative to their post-World
00:30War II trendline.
00:31So I don't know how much room is left there for either of those to advance a lot, at least
00:36not with some pause.
00:38If I look at profit margins, they're at record highs for corporate America.
00:43You look at the same time that labor compensation of GDP is at a record low, how much more is
00:48left to squeeze out of that.
00:49And that investment from corporations is a percent of GDP is at a record high.
00:54So cutting costs or investing more to cut costs is being used up.
00:59If you look at investors, they're all in.
01:02I mean, from the national accounts, the households' equity holdings as a percent of total financial assets are at record
01:11highs.
01:11And their household cash holdings to the market capitalization of the stock market is close to a record low.
01:17So there's not a lot of room for them to increase their exposure, if you will.
01:23Then you look at valuations.
01:24They're not at record highs, but they're very close.
01:27So I'm going to go ahead and see if you look at valuations.
Commenti