🚨 THIS IS ONE OF THE MOST EXPENSIVE MARKETS IN HISTORY 🚨
valuation remains a headwind for US equities (out of the 5 pillars of our investment process, valuation is the only negative one) . S&P 500 is expensive on 19 out of 20 metrics according to the Bank of America analysis. Some metrics are over 100% above historical averages. Shiller P/E and S&P 500 Market Cap to GDP are now 101% and 147% above averages. Source: Global Markets Investor, Facset, Bloomberg, BofA
Semiconductors index: Was it a "head & shoulders top" (going to bring down the entire stock market)?
Or is it just a correction in a bull market??? Source: J-C Parets
Are rate cuts necessarily bullish for stocks?
Not if they're associated with an economic downturn and earnings decline. E.g 2007-2008 Source: Charlie Bilello
⚠️US BANKS UNREALIZED LOSSES HIT $512.9 BILLION IN Q2 2024⚠️
Q2 marks the 11th STRAIGHT quarter of unrealized losses on investment securities for banks, a streak never seen before. The number of banks on the FDIC Problem Bank List increased to 66 and represents 1.5% of total. Source: Global Markets Investor
$ALLY tumbled 17.5% yesterday as auto loan repayments see rising delinquency rates spook investors
More evidence that a growing portion of consumers are increasingly struggling. Source: Markets & Mayhem
🚨IS THIS THE BIGGEST CONCENTRATION BUBBLE IN HISTORY?🚨
Magnificent 7 stocks now account for ~32% of the S&P 500, near the all-time high. This share has increased by 10 percentage points in just 1.5 years. This is even 10 percentage pts HIGHER than in the 2000 DOT-COM BUBBLE. Source: LSEG Datastream, Global Markets Investor
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.
