Glowtime Day: $AAPL PEG ratio high at 3.03x
Below a SP500 heatmap with PEG ratios... Source: Mike Zaccardi, CFA, CMT, MBA, Bloomberg
2024 S&P Sector Returns...
Utilities $XLU: +22% Consumer Staples $XLP: +17% Tech $XLK: +6% Consumer Discretionary $XLY: +2% Leadership has turned. This is a big shift from 2023.
After surpassing the March 2000 relative strength high, the Tech sector has sharply underperformed over the last 2 months.
Is this the start of a secular change in leadership? Source: Charlie Bilello
An important chart by J-C Parets >>> High Beta outperforming Low Volatility stocks is usually something we see in healthy market environments.
This year, however, High Beta has been struggling to make any progress vs their Low Volatility counterparts. "Beta" is essentially how volatile a stock is relative to its benchmark. So High Beta think $SMCI, $NVDA, $AMD, etc.. You have half the S&P500 High Beta Index in Technology and another 17% in Consumer Discretionary. In contrast, for Low Volatility think Berkshire Hathaway, Coca-Cola, Visa, Procter & Gamble. You'll find a lot of Financials, Consumer Staples, Utilities and Industrials in this group. Source: J-C Parets
Markets tend to struggle from now until mid-October during Presidential election years
BofA
Traders weigh "buy the dip" opportunities on Asian tech stocks
Source: Bloomberg
Is a massive regime change in markets taking place?
This week has again been volatile for stocks. But the big news for investors is for the first time in a few years, bonds are acting again as a hedge against stock market drawdowns. Or in other words: after a period of positive correlation which wrecked 60/40 portfolios, the stock/bond correlation is turning negative again. This is an important development. Source: Alfonso Peccatiello
This Goldman chart shows that September is historically weak for global equities and risk assets w/avg return at -2.31%.
Sept 16th has been a seasonal turning point, w/2H Sept being the worst performing 2 weeks of the year, BUT maybe this seasonality gets pre-traded by market participants this year. Goldman says flow-of-funds, such as the quarter-end pension rebalancing can explain the annual weakness in September. Source: HolgerZ, GS
