The S&P 500 has been up 7 months in a row with a 20%+ gain.
Historically, what comes next after such a rally? See the anser below. On average, the S&P 500 record positive returns. But the last 2 times we had a similar streak (Sept 2009 and August 2021), the market paused a month after. Source: RBC, TheMarketStats
The good news on US equities is coming from... valuation.
Indeed, while absolute P/Es remain quite expensive, most sectors have de-rated throughout November - see chart below. When the column is red, it means that P/E has decreased in November. When it is blue, it implies that the P/E has increased. It seems that Tech and discretionary both de-rated in November Source: RBC, Bloomberg
All the world's gold, in one visual
There are 216,265 tonnes of gold above ground… and another 132,118 tonnes still waiting below Where is it all? Jewelry: 97,149t Central Banks: 37,755t Industry & Tech: 32,727t Bars & Coins: 48,634t Source: ⚡️AIGOLD⚡️ @AIGOLDOfficial
Retail investors and Quants dominate US stocks trading
Source: Empirical research, RBC
HSBC forecasts that OpenAI is going to have nearly a half trillion in operating losses until 2030.
https://lnkd.in/eMkGJKyi Source: Jack Farley @JackFarley96, FT
This is probably why the markets love Alphabet $GOOGL - at least for now.
Over the last 12 months, Alphabet generated $151.4B in operating cash flow, enough to: A) Spend $77.8B on capex B) Repay $19.8B of debt C) Buy back $59.5B of stock and pay $10B in dividends This is elite cash-machine territory. With much quality / over-indebtedness than with some of the other AI names Source: Gainify @gainify_io
Breakout Alert 🚨: Gold
Source: Barchart
The Russell Micro-cap Index includes the smallest 1000 securities in the Russell2000 Index, plus the next 1000 smallest eligible securities by market cap.
This index is on pace to finish November at its highest monthly close in its entire history. Risk appetite or Risk aversion? Source: J.C. Parets @JC_ParetsX
