Why investing into the "next big thing" can be dangerous
Source: Compounding Quality
New all-time highs for industrial stocks Deere & Caterpillar
Are industrial stocks the new tech? Source charts: All Star Charts
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
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
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
Swiss National Bank balance sheet trades in tandem w/FANG Plus Index
The Swiss National Bank is an active investor in stock markets, unlike most other Central Banks. SNB balance sheet trades in tandem w/FANG Plus Index. Source: Bloomberg, HolgerZ
