Interest costs as a share of US corporate profits are near the lowest levels in 40 years
This is partly because many companies have locked in long-term financing at low rates. This has kept profit margins elevated. Maybe companies are better to manage their debt schedule than the US Treasury... Source: The daily shot, Lance Roberts
This sweet spot where you have "pretty solid" companies with ROE of 10-20% and price-to-sales ratios under 1.0 is virtually non-existent in the US
Only 20 companies in the S&P 500 fit that profile. In Japan, such companies are one-sixth of the Nikkei 225 - source: Jeff Weniger
Annualized Total Returns over the last 7 years...
US Stocks: +8.8% US Bonds: -0.3% US 60/40: +5.4% Source: Charlie Bilello
JP Morgan Asset class and style returns by year + October returns
Despite a pullback in October, Growth stocks continue to lead in 2023 by a big margin
WeWork has officially filed for bankruptcy
From a $47 billion private market valuation to a $9 billion IPO via a SPAC in 2021, and now trading at $1.32 a share in after hours, marking a jaw-dropping 99% drop from its IPO price. The co-working space drama continues to unfold, reminding us that even unicorns can stumble in the real world of business. Source: Michael Burry Stock Tracker
The SP500 $SPX continues trading inside the almost perfect channel that has been in place since July highs
So far this is just a reversal off the lower part of the channel. First resistance is around the 200 day moving average, currently at 4260ish. Note the 50/100 day cross very much in "force". Source: TME, Refinitiv
Beware the short squeeze... CTAs are now short $25 billion of US equities, one of the largest short positions in the 8 years...
Source: Barchart
The US equity market ultra-dominance
Source: Michel A.Arouet, Bloomberg, Goldman Sachs
