Earnings power remains positive. But that stock-cash relationship will improve when the Fed turns. Liquidity will turn neutral early next year if the Fed just stays on hold, and would likely turn positive later in the year. Any Fed easing would quickly turn that indicator positive. However, the sharply inverted yield curve is telling us that a reversal in the Fed's tightening is now only a question of when, not if.
Market volatility stays high.
The information age has brought all information to all. The quantification of the cost may be the increase in volatility, as even a minor bit of information elicits a major reaction. Analyst rating changes lag market moves. Muted Business Cycle. While market volatility increases, economic volatility decreases.