Don't be too excited about Fed rate cuts.
Examining Fed rate cycles since 1970s has revealed that investors have more to fear from 1st cut in a cycle than the pause. On average, sp500 is up +5% over 100 days between last Fed tightening and 1st cut. The trough in broader market is -23% over 200 days after 1st cut in a series, SRP has calculated. Source: HolgerZ
Great visual by Quartr ->
Agriculture equipment giant $DE may appear boring at first glance. Under the hood lies a complex and fascinating entity with a rich 187-year history, leveraging cutting-edge chips, sensors, and autonomy technology. $DE has grown its EPS at a 11.7% CAGR, or 38x, since 1990
Tech Stocks are trading at all-time highs relative to the SP500, even surpassing the peak of the Dot Com bubble...
Source: BofA, Bar chart
If one ignores dividends gold has been able to keep up with equities since Nixon ended things in 1971.
Source: Michel A.Arouet, Bloomberg
Here are the Equally-weighted Nasdaq100 and S&P500.
If these two are above their former cycle highs, it's hard to be too bearish on this market. Source: J-C Parets
us households equity allocation is at record high
Source: Goldman Sachs
At 5,215, the S&P 500 is already 7.3% above the average 2024 year-end price target from Wall Street strategists (4,861). $SPX
Source: Charlie Bilello
all-time high my friends !
Source: Not Jerome Powell
