Bubble-like stock valuations and debt crisis chatter aren't exactly bullish

As always, I hate to be the bearer of bad news.

But over the next few weeks, I think you're going to see more volatile market days like you saw this week. I would consider it a wake-up call for investors.

Stock prices can't keep outrunning the economic realities smacking everyone in the face.

Oil ( CL=F , BZ=F ) above $100 per barrel is a real problem for companies and optimism around corporate earnings. Just look at the results this week from PepsiCo ( PEP ), which were pressured by inflation on consumers and the diesel-powered trucks delivering Lay's potato chips to stores.

Delta's ( DAL ) earnings on Friday had the same negative inflationary vibes.

Meanwhile, the 10-year Treasury ( ^TNX ) is being sustained above 5% — in fact, it touched 5.33% on Thursday. Stocks can't keep ignoring the bond market. A higher cost of capital hurts consumers and businesses.

It also resurfaces higher debt servicing costs on the country's epic — and growing — pile of debt .

"Just to be clear, I haven't worried about a debt crisis in the US until very recently," Harvard University professor Kenneth Rogoff said on Sozzi Unleashed . "Now the various elements of having a crisis, as we say, are there."

All of these macro and market things are happening as the stock market is filled with CrowdStrike-like ( CRWD ) AI stories. You know what I'm talking about — you've been buying AMD ( AMD ) at record highs this week.

Shares of the cybersecurity darling CrowdStrike now trade at 43.5 times forward price-to-sales. Not only is this enormous relative to the broader stock market and other cybersecurity players, but it's higher than CrowdStrike's peak forward sales multiple at its 2021 top. The stock's forward P/E ratio is 209 times.

These valuations aren't sustainable against the backdrop of the macro factors I just laid out. It's not, so stop thinking it is!

Buckle up for a wild end to the year for markets, friends.

Brian Sozzi is Yahoo Finance's Executive Editor, host of the Sozzi Unleashed morning show and the Power Players with Brian Sozzi podcast, and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi , Instagram , and LinkedIn . Tips on stories? Email brian.sozzi@yahoofinance.com.