Russell 2000 Outperformance vs S&P 500 continues.
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S&P 500 Price to Book (assets minus liabilities) ratio is now 5.2x, the most on record and in line with the 2000 Dot-Com bubble burst. When excluding the Magnificent 7 group, the P/B ratio is 4.2x, near a record. Source: Global Markets Investor
- They said a Harris administration would be a 4.7% headwind to overall S&P EPS growth and a Trump administration would be a 4% tailwind to S&P earnings. - The only caveat here is if we have a split congress. If so, Kamala may win but not be able to pass sweeping tax policies. Given current market action, it seems the market is currently pricing in those 2 scenarios: 1) Either Trump wins 2) or if Kamala does, she can’t pass her new tax policies because of a divided congress. Source: amit @amitisinvesting on X, BofA
Going back to 2000, there are only 25 weeks that had stronger gains, 24 of which were either in 2010 or 2021. Source: Bloomberg, Kevin Gordon on X