The equal-weighted S&P just went red YTD...
Source: Bloomberg, www.zerohedge.com
To put things into perspective: Nasdaq 100 now down ~9% from high, largely in the ‘zone’ of recent NDX drawdown episodes over the last 1 year
Source: Bloomberg, HolgerZ
Apollo just said that bonds are now more attractive than equities...
The spread between corporate bond yields and the S&P 500 earnings yield just hit its highest since 2008, at 1.5%. This spread was negative for nearly 13 years before turning positive in mid-2022. Even in 2020 this spread did not turn positive amidst the global lockdowns. Source: The Kobeissi Letter, Apollo
Value Stocks are trading near the cheapest levels of the past 30 years
Source: Barchart
The S&P 500 is now down 340 points, or 7.5%, since the Fed removed a recession from their forecast
On July 26th, the Fed raised rates and said they were not longer expecting a recession. The Fed marked the EXACT high in the S&P 500 which just hit its lowest levels since June. Since then, rate cut expectations were pushed out by a year and corporate bankruptcies hit their highest levels since the pandemic. Is the market losing faith in the Fed again? Source: The Kobeissi Letter
What’s the BIG SHORT right now? ESG Stocks.
Hedge funds are calling out fake green claims and overblown valuations boosted by stimulus. Blackrock & State Street are shutting down some ESG funds. Liquidation of ESG funds in 2023 is already larger than the last 3 years combined, And the year is not over.... Source: Genevieve Roch-Decter, CFA, Bloomberg
A $90 BILLION VALUATION FOR OPENAI?
OpenAI is in discussions to possibly sell shares in a move that would boost the company’s valuation from $29 billion to somewhere between $80 billion and $90 billion, according to a Wall Street Journal report citing people familiar with the talks. Employees would be allowed to sell their existing shares rather than the company issuing new ones, the Wall Street Journal said. In April, OpenAI picked up just over $300 million in funding from backers such as Sequoia Capital, Andreessen Horowitz, Thrive and K2 Global at a valuation of $29 billion. That was separate to a big investment from Microsoft announced earlier this year, which closed in January. The size of Microsoft’s investment was believed to be around $10 billion. Source: Techcrunch
Yes, the S&P 500 chart ($SPX) "looks" terrible (Head & Shoulders, trading below 50d and 100d MA, etc.) but it also looked ugly during September 2021 and had a last leg up in the 4 months that followed
Source: Nautilus Research
