Is there more drawdown ahead for the S&P500?
Over the last ~100 years, median year has a SPX peak to trough drawdown of 13%. Believe it or not current drawdown has only been 5%... Source: GS
India quickly catches up to China as the world’s largest emerging market.
Indian stocks comprise nearly 20% of the MSCI Emerging Markets index, while China has dropped to a quarter from 40% in 2020. The narrowing gap has become one of the biggest issues for investors in emerging markets this year as they debate whether to put capital into an already red-hot Indian market, or into Chinese stocks that are relatively cheap, but are being hit by an econ slowdown. https://lnkd.in/ddkSqFy5 Source: FT, Charlie Bilello
Nasdaq has underperformed Russell 2000 for 11 of the last 12 days, erasing YTD outperformance for the big-tech index
Source: Bloomberg, www.zerohedge.com
NEW: Fold becomes the first Bitcoin only financial services company to go public on the NASDAQ 👏
They already have 1,000 BTC on their balance sheet 🚀 Source: Bitcoin magazine
The last time Tech stocks were at these levels relative to the S&P500, Tech stocks crashed, particularly relative to the rest of the market.
Source: J-C Parets
One for the Bulls... As shown below, during this tech pullback, forward 12-months EPS in tech has actually ticked higher.
So you could argue that this is mostly a positioning and sentiment pullback, especially in tech... Source: Bloomberg, RBC
CTAs will dump stocks over the next week in EVERY SINGLE SCENARIO warns Goldman Sachs.
If the market trades lower, CTAs are projected to sell more than $7 billion worth of equities.
The S&P 500 yesterday ended a streak of 356 trading days going back to February 2023 without experiencing a one-day drop of 2% or more.
This was the longest streak since we went 949 trading days from May 2003-February 2007 without one! Source: Bespoke
