Market Complacency flashes Warning Signs as Wealth Gap Widens, Analyst Says
NEW YORK, September 24, 2025 - Concerns are mounting over increasing complacency in the bond market alongside a continued concentration of wealth in the United States, according to a note circulated today by Whitney Tilson, founder of Stansberry Research. The observations come as small-cap stocks present a potential value opportunity and Tilson prepares to participate in a charity poker tournament in New York City.
Tilson highlighted further analysis regarding Salesforce (CRM), receiving input from two additional readers who concur with his assessment that the stock is overvalued. He previously shared his skepticism about Salesforce’s valuation in a recent dispatch.
The note also points to a growing disparity in wealth distribution within the U.S., citing data indicating the wealthiest 1% now control a historically high percentage of the nation’s wealth. This trend, Tilson suggests, contributes to broader economic instability.
On the equity side, Tilson notes small-cap stocks are currently trading at a discount relative to large-cap stocks, potentially signaling a buying opportunity. He didn’t specify exact valuation metrics but implied the discrepancy warrants investor attention.
Adding to the cautionary tone, Tilson flagged tightening credit spreads as a key warning sign. Investment Grade credit spreads are currently at 0.74%, their tightest level since 1998, while high Yield credit spreads are near their tightest level since 2007 at 2.69%. Both are roughly half their past averages, indicating excessive risk-taking in the bond market.
Tilson announced his participation in the 15th annual Take ’Em to School Poker Tournament benefiting Education Reform Now, a nonprofit organization he co-founded. the event will be held tommorow, Thursday, September 25th, at 6 p.m. at Gotham Hall, 1356 Broadway in New York City. Cocktail tickets are available for $250 at the door or online at https://takeemtoschool.org/. Poker tickets are sold out, though a waitlist is available via mailto:events@takeemtoschool.org.
