Are large cap stocks losing popularity?
The number of large-cap US long-only funds has decreased by ~40% in 10 years, to its lowest level in decades. Since 2013, the number of large cap funds has declined from ~570 to ~340, according to Bank of America. In addition, active mutual funds have been consistently underperforming the market. More than 90% of actively-managed equity funds underperformed their benchmark in over the last 20 years. In 2023 alone, 60% of all active large-cap US equity funds underperformed the S&P 500. Source: Bank of America, The Kobeissi Letter
Brent crude futures extended gains on Monday, inching up amid political uncertainty in major producing countries after Iran’s president died in a helicopter crash.
But as always, things should be put into perspective: Iran has raised oil output over the last few years, with majority of exports going to buyers in China. Output is now >3mln bbl/d, the highest since 2019, making it the 3rd-biggest producer among OPEC members. But there are questions about how much higher Iran can take production considering capacity constraints. (BBG) Source: HolgerZ
As highlighted by Tavi Costa ->
Despite the recent surge in copper prices, when adjusted for true inflation, the metal is trading at levels we saw in the early 1990s. Will copper prices adjusted for gold still be this low by the end of this decade if we proceed with one of the largest infrastructure developments we've seen in the last 100 years??? Source: Crescat Capital, Bloomberg
13F filings showing a number of the top HedgeFunds trading the US Bitcoin ETF’s
Source: River
The metal bull market is broadening as Gold, Silver, Nickel and Copper are all exploding higher.
What is the message from Mr Market here? Source: www.zerohedge.com, Bloomberg
Not all new highs are the same.
Awesome chart from @sonusvarghese thru Ryan Detrick here. End of March, SPX up 10.2% YTD. Only 3.1% from EPS growth and the rest (7.1%) was from multiple expansion. On 5/15, SPX up 11.1% YTD. Now 5.3% from EPS growth and 6.0% from multiple expansion.
The Global X Uranium ETF $URA is already up 13.5% in May.
It's on track for its highest monthly close since March 2014... after spending the past several months consolidating. Source: Justin Spittler
Could headline inflation start following the rebound in commodities prices?
Source: Tavi Costa, Bloomberg
