Households continue to struggle to pay regular bills, with more than one third looking to delay rent, cell phone charges and other utility payments. That will put a strain on discretionary spending.

They certainly don’t seem to be in the market for new cars. And that’s killing the auto/auto parts industry.

Not surprisingly, businesses are going bankrupt at a record pace. Some of the large US bankruptcy filings in May alone? J. Crew, Neiman Marcus, Hertz, Tuesday Morning and Advantage.

Yet, investors are still willing to pay obscene prices for earnings 12 months out. Even if those profits magically “show up” in May of 2021, the price being paid for them is astronomical.

Just how crazy? Investors are coughing up a 10%-15% premium up and above the stock bubble highs of February 2020.

Price to book valuation insanity is palpable as well. For example, the book-to-price dispersion across the Russell 1000 Index has hit an all-time record. You really can’t make this stuff up!

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