Here's my read on what's happening out there. I realise it may not be your opinion but this is just my current of what I'm seeing out there.
The F&G is in extreme fear yet the Vix is low. MOVE is high so that shows panic hasnt moved into equities, yet, just bonds. So the things on fire, it just hasn't reached equities yet.
Breadth is at 155, during 1929 it was -170 so we can assume that is the absolute floor. 155 is incredibly low showing insane clustering into very very few stocks.
The 10yr broke out of a 30 year downtrend and is now in an uptrend. We're now in a long term bond bear market therefore the next 30-40 years will be nothing like the last. Passive investing may not work as well.
We are in the unusual place to us in this era where bonds are offering good guarenteed returns narrowing the risk premium between a bond and the S&P. A guaranteed 6% return is a better deal than a risky 9% S&P return in an unfavourable environment.
Growth and momentum stocks have done well for the past 20 years. Those stocks get killed when innovation becomes expensive because innovation requires either borrowing or dilution. The ones with low debt or sound balance sheets will survive, these are currently catching the only bids in the market now.
We will see growth and momentum stocks cycle out and replaced in future with an increasing focus on balance sheet quality. Low debt stable names over growth until the yields and rates come down which could be way down the road.
Thanks for reading.