In a new report, Deutsche Bank analyst Joseph LaVorgna discusses an alarming trend in U.S. stockpiles. According to LaVorgna, the ratio of business inventories to sales has climbed to 1.40, its highest level since May 2009.

Why does this number matter? LaVorgna explains that there are two potential outcomes to the situation.

“With the ratio of business inventories to sales elevated, the issue for market participants is how this series will return to its longer-term trend. Either the growth in inventories has to meaningfully slow or the rate of sales has to meaningfully increase (or both).”

So far, there is…

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