while the bulls were snorting about the corporate buybacks being such a huge boost for the market, something else was going on that they're not talking about. The Fed tells us that despite a dip of $300 billion in the first quarter, there were $1.8 trillion more in nonfinancial corporate equities outstanding in the first quarter than in Q1 2017. All of those buybacks have barely made a dent in the trend of increasing supply of equities. And financial [corps], banks, shadow banks, insurers, and brokers issued a cool trillion in net new equities. There's more supply, not less!

... [So how has the market stayed levitated?] Speculative fever among institutional investors and hedge funds has heated up. They have increased their borrowings in an effort to chase an overheated market higher. The increased use of leverage has only increased risk.

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