Business Development Companies (BDCs), alternative asset managers, and regional banks have come under significant pressure as credit fears mount, reflecting growing concern over the health of the lending environment. Whether this turns into something broader remains to be seen.
Longtime readers familiar with my TCTM Risk-Off Composite know that financials are a critical component, accounting for two of the twelve inputs.
Financials have often served as an early warning system ahead of major market tops. When the sector lags meaningfully behind the broader market, it’s a red flag that deserves close attention.
While not signaling a problem yet, the model is trending in the wrong direction. See below for a historical account.
Each Chart of the Week highlights a theme, idea, or historic event that stood out to us. If you find it interesting, feel free to share it with friends or colleagues.
Visit www.tpmarketresearch.com to learn more about our research offering.
