For Those Who Still Care About Fundamentals, A Troubling Chart

We realize that fundamental analysis, especially in light of recent events, is dead and buried, but for those few who still keep track, here is a troubling chart showing how fast the S&P's cash flow is sinking relative to its debt load. As Bank of America helpfully points out, the USA is now trading at 13x EV/EBITDA, a 90th percentile since 1995.

And for those equity analysts who have not encountered such arcane concepts as cash flow and EBITDA, here is a table from Goldman showing that the median stock is currently trading in the 99th percentile of historical valuations.

The good news, as we noted up top, is that when it comes to momentum ignition higher (thanks to HFTs) and multiple expansion (thanks to central banks) none of this actually matters.