MicroStrategy just unveiled its bold new "21/21 Plan" to raise $42 billion in capital over the next 3 years.
The strategy includes $21 billion from equity and $21 billion from fixed income. With this capital injection, MicroStrategy aims to boost its Bitcoin holdings and enhance BTC yield, solidifying its commitment to Bitcoin as a core treasury reserve asset.
It seems the stock markets haven’t yet recognized that equity risk premiums have turned negative.
The yield on the 10y US bond is now higher than the earnings yield of the S&P 500... Source: HolgerZ, Bloomberg
⌛ S&P 500 EARNINGS HAVE BEEN DISAPPOINTING⌛
75% of companies beat Wall Street analysts' Q3 earnings expectations, the lowest share since Q4 2022. This is despite huge earnings estimates downgrades that took place in Sep This week will be extremely crucial as 42% firms report. Source. Global Markets Investor, Bloomberg
The other "Trump Trade": $DJT vs. $NYT
Trump Media $DJT $10.5B New York Times $NYT $9.2B Source: Lawrence McDonald, Bloomberg data.
🚨 MARKET EUPHORIA IS AN UNDERSTATEMENT🚨
Asset managers' net long positions on the S&P 500, Dow Jones and Nasdaq futures are now the second-highest in 15 YEARS. They are now only slightly below the 2021 levels seen before the 2022 bear market. Professionals are all in stocks. Source: Global Markets Investor
The last time the S&P 500 rose more than 40% over 12 months was in 1987.
Source: The Great Martis @great_martis
👎 BIG BREAKING >>> Super Micro Computer stock, $SMCI, falls 27% after Ernst & Young announces they refuse to audit the company going forward.
EY is "unwilling to be associated with the financial statements prepared by management," the statement said. 🚨 $SMCI stock is imploding Source: CNBC
This is one of the most resilient stock market in history:
The S&P 500 has been trading above its 200-day moving average for 247 straight sessions, the third-longest streak in 8 years. The previous 2 records were posted in 2016-2018 and 2020-2021 which lasted for 430 and 400 trading days, respectively. Over the last 12 months, the S&P 500 is now up over 40%, marking the 4th best 12-month performance this century. There have been only three other occurrences since 2000 when the index rallied at least 39% year-over-year: 2004, 2010, and 2021. To put this into perspective, the S&P 500's average annual return since 1957 has been ~10%. Source: The Kobeissi Letter, The Daily Shot
