BBG's Authers: "It might be unfair to call this a dash for trash. "
But nobody seems to care about quality. This is from Bloomberg’s Factors To Watch service, showing the results of buying the top 20% of stocks by a factor while shorting the worst 20%. "Since Liberation Day, buying quality stocks has been a one-way ticket to losses." Meanwhile, Momentum has been performing strongly. Source: Bloomberg, Neil Sethi
Nomura's McElligott says there's a "new 60/40":
"Government bonds no longer work as your Risk-Asset / Long Asset Beta Hedge in a world of “Sticky Higher Inflation”... “The New 60/40” is a 50/50 Equities Barbell Long between AI Semis and Energy…. where Energy insulates on the Global “Supply Shock” and “Molecule Shortage” as the risk-off vehicle in the current backdrop, against the risk-on component being a world where AI Hyperscalers are going from $600B of Capex in 2026 to upwards of ~$1 TRILLION in 2027 and “Chasing Compute”. Source: Neil Sethi
Companies bought 50,351 bitcoin in Q1 this year, the most amount ever 🤯 🚀
Source: Bitcoin Magazine
🔴America's valuation premium over Europe is historically WIDE:
The S&P 500 trades at a forward price-to-earnings (P/E) ratio of ~21 times, while the Stoxx Europe 600 trades at ~14 times. This brings the valuation gap up to ~7 points, the widest since at least the 2008 Financial Crisis. This comes as the Middle East war exposed Europe's structural vulnerability to energy shocks, turning what looked like attractive valuations into a value trap. At the same time, the US benefited from its relative energy independence and surging tech sector. Source: FT, Factset, Global Markets Investor
President Trump is flexing on his gains on $INTC...
Source: Donald Trump on Truth Social
Bitcoin is trading above the key $80k level, with the “light golden cross” (50/100-day) now in place.
The 200-day MA sits slightly higher, a level that hasn’t seen a close above it since last October. Source: The Market Ear
The NVDA fade
The short-term gap between NVDA and SMH continues to widen, with the month-end dislocation pushing into extreme territory. Source: The Market Fear
Bet on the President, the Fed, or CPI, skip the analysis, guesswork, and bias.
Eric Balchunas explained on X why prediction market ETFs may end up being far more popular—and legitimate—than most people expect. For every major macro event (elections, Fed decisions, inflation data), investors are flooded with expert opinions on which assets will rise or fall. Yet, time and again, the opposite happens. Prediction markets flip the approach. Instead of guessing how markets will react, you simply bet on the outcome itself—yes or no. It strips away interpretation, narrative, and bias. “But why use a prediction market ETF instead of going direct?” People asked the same question about crypto. The reality: most investors prefer ETFs. They’re regulated, low-cost, familiar, and fit seamlessly into brokerage accounts. That’s why this category has real potential—even if it comes with a bit of noise along the way. Source: Eric Balchunas on X Bloomberg Intelligence
