Oracle and its peers... earnings versus debt
(based on last available financial quarter) Source: Bloomberg
🗓️ A Look Back at the Dot-Com Bubble's Aftermath
For those unfamiliar with the late-1990s internet bubble that burst in March 2000: the pain was initially confined. As Peter Berezin of BCA Research highlighted, non-technology stocks continued their ascent for a full year before the broader market succumbed to the 2001 recession. Is this history set to repeat, ushering in another "great rotation" in the coming months?
We are running into the 4th and 5th best 2-weeks periods.
And they happen to be back-to-back... Source: Goldman Sachs, isabelnet, RBC
🤯 The Hidden Engine Powering the US Economy
Everyone is talking about interest rates and inflation, but here’s the underappreciated truth: The average US household’s net worth has silently exploded thanks to unbelievable equity returns over the last five years. 📈 That extra few hundred dollars on discretionary spending? It’s mentally offset by a stock portfolio that's sitting significantly higher. The Takeaway: This "wealth effect" isn't just a coincidence, it's likely among the reasons why the long-predicted recession keeps failing to materialize. When people feel richer, they spend! Source: Boring_Business @BoringBiz_
US small-caps at a turning point?
Source: J-C Parets
Update: the world didn't end. New all-time closing high
Source: Charlie Bilello
SMALL IS BIG...
The Russell 2000 US small-caps index is extending the break out move. This looks like an inverse head and shoulders formation. Plenty room to run before we reach trend channel highs. Source: LSEG, The Market Ear
US cyclicals vs. defensives up 13 days in a row.
Goldman's Coppersmith: "You don’t get moves like this unless the market is starting to lean into a better growth outlook". Source: LSEG, The Market Ear
