BREAKING: The difference between the S&P 500’s earnings yield and BBB-rated corporate bond yield has dropped to -1.9%, the lowest in 15 years.
Excluding a brief period in 2009, this is the lowest level in 23 years. The gap has fallen by 4 percentage points over the last 5 years as US interest rates have risen sharply. In other words, less risky investment-grade corporate bonds now pay a higher yield than S&P 500 companies' profits relative to their stock prices. This metric suggests the market may be overvalued. Can this gap continue to widen? Source: Bloomberg, The Kobeissi Letter
Putting flows into perspective
gold (in black) vs. bitcoin (in orange) etf inflows per year since launch. Source: Bitwise
The CEO of Nvidia has a legendary LinkedIn profile:
Source: Brew Markets @brewmarkets
TRUMP'S NEW CABINET: A DIVERSE MIX OF POLITICS AND BUSINESS.
Nice infographic by The Epoch Times. thru Mario Nawfal on X Trump's second administration introduces a cabinet of varied backgrounds, including former Democrats and business leaders. Robert F. Kennedy Jr., a former Democrat, joins after endorsing Trump and navigating political backlash from his family. Tulsi Gabbard, once a progressive Democrat, now champions conservative causes alongside the administration. This team blends political outsiders with seasoned operatives, shaping a cabinet that reflects Trump's unconventional approach. Source: The Epoch Times https://lnkd.in/exsmcfen
If you started dollar cost averaging in 2017 with just $25 a week, your $10,450 invested would have returned:
⛏️ Gold: $16,770.50 🏦 Stocks: $15,339.39 🔥 Bitcoin: $123,386.57 Disclaimer: Past results do not guarantee future returns Source: Bitcoin Magazine
Breadth matters. And what we currently see on us equities does not look healthy.
Here is a visual of the % of stocks outperforming the S&P500: ALL TIME LOWS. In other words, concentration risk measured in this way beats 2000 lows. Source: Samantha LaDuc on X, GS
Year 1 of the presidential election cycle is not that great, but still decent. 1928-2024 $SPX
Source: Mike Zaccardi, CFA, CMT, MBA
Storytelling is a high ROI skill.
But it's massively overlooked (in life and business). 11 storytelling tips to accelerate your career by Ben Meer @SystemSunday on X:
