No one holds Russell 2000 (small-caps) stocks any more...
Source: Bob Elliott, BofA, Factset
What are the biggest shorts?
Microstrategy $MSTR is one of the biggest shorts in the entire US market. Nvidia $NVDA is currently leading the pack. Source: Bloomberg
A contrarian idea on us small caps?
=> FUNDSTRAT: “.. Our top idea for 2024 is small-caps, where we see at least 50% upside .. Russell 2000 companies are set to grow .. faster than the $SPX .. Valuations are far more attractive .. when CEO confidence recovers, we also see the low valuations as setting the stage for synergistic M&A ..” Source: Carl Quintanilla, Fund strat
BREAKING: The Nasdaq Composite index is officially up 30% from its October 2023 low.
That's a 30% gain in 5 months or an average of 6% per month since October. To put this in perspective, the median ANNUAL return for the S&P 500 is 10%. This means that the Nasdaq has TRIPLED the median sp500 return in just 5 months. The top 10% of stocks in the S&P 500 also now reflect 75% of the index. Tech stocks have never been more powerful. Source: The Kobeissi Letter
BREAKING: Federal Reserve
The Fed said on Tuesday that it officially saw a net negative income of $114.3 billion in 2023, a record loss tied to expenses related to managing the U.S. central bank's short-term interest rate target. The loss last year follows $58.8 billion in net income in 2022, the Fed said. Source: Barchart
Gold's role as a neutral asset with millennia of history as money is experiencing a resurgence relative to US Treasuries for global central bank reserve accumulations.
Source: Tavi Costa, Bloomberg
Cartoon of the Day by Hedgeye
$34.6 TRILLION and counting... Are we past the point of no return?
The 12 Worst Investment Funds Over the Past Decade
by Visual Capitalist