Retail investors have bought over $5 billion of leveraged equity ETFs in the last 12 months, the most since 2022.
This marks a $3 billion increase on a 1-month rolling sum basis in just a few months. Since the October 2023 low, retail investors have been piling into leveraged ETFs. However, a similar pattern was seen in 2021 and early 2022 after which retail experienced significant losses. The average retail investor portfolio drawdown from the 2022 peak was 35% and took 1.5 years to recover. Retail risk appetite is near record highs. Source: FT, The Kobeissi Letter
Who needs Mag 7 if one can buy utilities stocks?
Source: Michel A.Arouet
8 of the 10 biggest winning stocks in 2020 have lost value since the end of that year including Tesla $TSLA
Source: Barchart, FT
Wall Street is turning less negative on China stocks
Source: Daily Compounding
Great observation by Dr. Michael Stamos, CFA - Head of Global Research & Development of Global Multi Asset Department at Allianz Global Investors
-> "On days when bonds were up, stocks tended to go up as well. When bonds fell, stocks managed to stay at least flat. Overall it was a pretty nice environment for equity investors. Lets hope this doesn't turn into a high-correlation-when-markets-are-down type of environment".
Apple has bought back $625 billion in stock over the past 10 years, which is greater than the market cap of 492 companies in the S&P 500.
$AAPL Source: Charlie Bilello
Stocks, bonds and cryptos rally following soft US jobs data.
Hiring slows to 175,000 jobs in April way below the forecasted 240k. This is the lowest figure since Oct 2023’s +165k. Household survey came in below forecasts as well with unemployment rate rising to 3.9% from March's 3.8%. Wage growth slows to 0.2% MoM vs 0.3% expected. Note that 0.2% is consistent with 2% inflation. Source: Bloomberg, HolgerZ
If you had invested $10,000 into Peloton $PTON at its peak in January 2021 and held to today you'd currently have ... $174
Source: Evan, Ycharts
