Jason Zweig on reasons to not allocate 100% to stocks:
Source: Brian Feroldi
264 of the S&P 500’s constituents, or a little over 52% of the index, are actually still up in 2025.
The star of the S&P 500 Class of Q1 so far is CVS HealthCVS $65.81 (2.74%), which has jumped 45% since the start of the year, closely followed by Philip Morris InternationalPM $153.14 (-0.58%) and Super Micro, which is doing the absolute bare minimum to remain on the market. Uber also joins the all-star lineup, ahead of Meta, which is the best of the Big Tech stocks, evading the pain of peers Amazon (-7%), Nvidia (-14%), and Tesla (-33%), which are all down. But the one company that’s down deepest in the trenches is UGG and Hoka shoe company DeckersDECK $136.40 (1.67%), which never recovered from getting stomped after its underwhelming Q3 update. Source: Chartr
EU defence stocks so far this year....
Source: Koyfin
U.S. households now have the biggest allocation to stocks in history
Source: Win Smart, CFA @WinfieldSmart
We have seen some positive correlation between bond yields and stocks recently.
Adding long-dated US Treasuries as a portfolio hedge now makes more sense. Source: Bloomberg, Barclays
US equities now have the highest CAPE ratio globally.
More importantly: The tech sector alone is at a staggering ~60x CAPE. Source: Tavi Costa, Bloomberg
The Trump 1.0 put was on equities $SPY
Will the Trump 2.0 put be on us treasuries $TLT ??? Source: Geiger Capital @Geiger_Capital on X, Bloomberg
Warren Buffett has been a net seller of stocks for 9 consecutive quarters now…
(h/t @zerohedge)
