What is the US real footprint?
US is punching well above its weight, Ruchir Sharma says. US stock market value has reached 60% of global total, which is 15% higher than its long-term average. But the US real footprint much smaller: ~50% of corpate earnings, 25% of world GDP, 1/5th of listed companies and 4% of global population. Source: FT, HolgerZ
China's reopening is underway!
As shown by the average traffic congestion index in 10 major Chinese cities, China's domestic mobility is recovering rapidly!
A death cross is looming on the dollar
The dollar continued sliding today, now at its lowest since June 2022 (and a death cross is looming). Source: Bloomberg, www.zerohedge.com
Recession hasn't been discounted by the stock market
Historically, the ERP (Equity Risk Premium) rises materially when a recession arises. So don't assume it is priced. Source: Morgan Stanley
Biggest Junk-Bond ETF Draws Most Cash Since 2020 as Debt Rallies
HYG ETF attracted $1.7 billion of inflows amid cross-asset rally Source: Bloomberg
Japan vs. US from the lens of Earnings Yield minus 2-year Bond Yield
Using Earnings Yield minus 2-year Bond Yield, Japan equities are massively undervalued vs. the US. Yet Japan is under-owned by international investors and under-represented in the World equity index. Source chart: Jeff Weniger
The world's biggest bull market?
According to Goldman's prime book, the crowd has been very busy loading up on Chinese equities and selling US stocks (mainly driven by short sales). Meanwhile, the CSI 300 extended the move higher this morning, closing at the highest levels since mid September. On a side not, the Kraneshares China ETF (KWEB) is up approx 100% from October lows... Source: GS, Bloomberg, The Market Ear
Country distribution of top 500 companies by market cap. All EU countries consolidated together.
Source: chartbear
