Diminished recession risks, continued central bank support, Tempering of trade tensions, global economy to climb back to pre-crisis trend.
Risk assets will outperform but note elevated valuations
Allocation skew to EM, Japan and Europe ex UK
Maintain low cash position with overweight in High Yield and neutral on IG holding curve steepening positions
Before I get started, I love diverging charts. I can only assume that prior to 2008, the two measurements continued to track each other. I'll have to dig more into Yardeni's methodology. http://www.yardeni.com/pub/stmktfsmi.pdf