S&P 500 VALUATION IS IN LINE WITH THE 2000 DOT-COM BUBBLE PEAK
S&P 500 Price to Book (assets minus liabilities) ratio is now 5.2x, the most on record and in line with the 2000 Dot-Com bubble burst. When excluding the Magnificent 7 group, the P/B ratio is 4.2x, near a record. Source: Global Markets Investor
The 10 year bond yield soared on Monday, closing i on 4.2%.
The rise in bond yields took stocks down with them. Has the Fed lost control of the bond market? Was the Fed jumbo rate cut a policy mistake?
The race to $4 trillion market-cap is ON. 🏁
Which company do you think will be the first to hit this historic milestone? $AAPL $NVDA $MSFT Source: Trend Spider
What could be the tax effects on SP500 EPS based on a Trump or Harris win? Here's what BofA projects:
- They said a Harris administration would be a 4.7% headwind to overall S&P EPS growth and a Trump administration would be a 4% tailwind to S&P earnings. - The only caveat here is if we have a split congress. If so, Kamala may win but not be able to pass sweeping tax policies. Given current market action, it seems the market is currently pricing in those 2 scenarios: 1) Either Trump wins 2) or if Kamala does, she can’t pass her new tax policies because of a divided congress. Source: amit @amitisinvesting on X, BofA
Global Equity Returns this year...
Source: Charlie Bilello
This is quite impressive ... the S&P 500 is up by 38.8% year/year.
Going back to 2000, there are only 25 weeks that had stronger gains, 24 of which were either in 2010 or 2021. Source: Bloomberg, Kevin Gordon on X
Since the launch of ChatGPT, the 6 biggest tech companies have added $8.2T in market value.
Nvidia added the most, with more than $2.5B! $NVDA $MSFT $META $AAPL $AMZN $GOOGL Source: Bloomberg Opinion, The Future Investors
BREAKING 🚨: The "Yen carry trade unwinding risk" is unwinding
Japanese Yen has fallen through the 150 level against the U.S. Dollar for the first time in 2.5 months Source: Barchart
