Mind the gap: The valuation of S&P 500 has become cheaper but attractiveness vs interest rates has decreased massively as US 10y real yields now at almost 2%
Chart via Goldman Sachs thru HolgerZ
ANALYSTS ARE RAISING QUARTERLY S&P 500 EPS ESTIMATES FOR THE FIRST TIME SINCE Q3 2021
At the end of the earnings season for the second quarter, have analysts lowered EPS estimates more than normal for S&P 500 companies for the third quarter? The answer is no. During the months of July and August, analysts increased EPS estimates for S&P 500 companies for the third quarter. The Q3 bottom-up EPS estimate increased by 0.4% (to $56.10 from $55.86) from June 30 to August 31. While analysts were raising EPS estimates in aggregate for the third quarter, they were also increasing EPS estimates for the fourth quarter. The bottom-up EPS estimate for the fourth quarter increased by 0.6%. Source: Factset
US stocks are on track for their 8th annual outperformance vs Stoxx 600 in 10 years
Source: Bloomberg
Asset class returns during previous years and 2023 ytd as of 1st of September
Bitcoin is still the best asset class so far this year. Source: Charlie Bilello
Anti-obesity drug is the new luxury...Novo is Europe's biggest company
Source: TME, Refinitiv
The KBW Bank Index fell by 8.8% in August, the weakest bank in the index is Citi with a -13.4% decline
Source: Bloomberg, HolgerZ
Is the US stock market severely mispriced?
Typically, the dividend yield on the S&P 500 is well above the US 30y real yield. That has changed. Source: Bloomberg, HolgerZ
The most profitable companies in the world
Source: InvestyWise
