US equites sector valuations vs. history
>>> Energy as the standout cheap one< trades at a material discount to the S&P 500 due to lower growth characteristics and concerns about the duration of the cycle. Source: Goldman Sachs, TME
Cash now earns more than the S&P 500 by the largest margin in 23 years
Source: TME, Bloomberg
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
