"The Largest stocks today have cheaper valuations compared to the Largest 7 in 2000"
@NDR_Research thru Mike Z.
In bull markets stocks go up
Source: J-C Parets
The difference between the MEDIAN and the MEAN CUMULATIVE returns of US stocks since 1926 is amazing...
As mentioned by @SpencerHakimian on X: "Stock returns are so skewed to the 4% of stocks that are responsible for all equity market returns that have occurred in the past 100 years. Statistically, it is virtually impossible to outperform an index over time since you would have needed to specifically own the tiny percentage of stocks that beat the index, and specifically avoid the vast majority of stocks that underperformed the index. Individual stock picking turns investing from a positive sum game to a negative sum game. Index investing is like being the casino. Individual stock picking is like being the gambler". Source: Baird, Michel A.Arouet
The top 10 largest stocks in the world are now worth a combined $18.74 Trillion down from $19.31T last week
Source: Evan
Under the surface, the US equity market looks stronger than before...
This might be counterintuitive to many investors who got hurt this week on their large-cap growth positions, the market looks actually healthier than it was a few weeks ago...As highlighted by the great J-C Parets, there are plenty of new all-time highs everywhere: DJ Industrial average, S&P 500 equal-weight, Mid-cap 400, etc. A mentioned by J-C Parets, we just saw the most amount of stocks on the NYSE above their 200 day moving average that we've seen this entire bull market. We also saw the most amount of stocks on the NYSE and the Nasdaq hitting new 52-week highs that we've seen this whole bull market. You can go sector by sector and you'll see. Source: J-C Parets
Interesting point by HolgerZ on X. Unlike on Wall Street – big stocks in germany are still doing well, while small stocks are struggling.
This can be seen in the ratio of the Benchmark Index Dax to the Mid-Cap-Index MDax, which hit its highest level since 2011. This could be because the economy isn't doing great, and small companies are more affected by this. The Purchasing Managers' Index for Germany dropped below make-or-break 50 this week, highlighting Germany's economic challenges. Source: HolgerZ, Bloomberg
Small Cap Stocks $IWM are on track to outperform the S&P 500 $SPX in July by the biggest margin in 24 years
Source: Barchart, Bloomberg
This week equity markets continued the rotation that began earlier this month, with small-cap stocks and value and cyclical sectors all outperforming mega-cap technology and growth sectors.
Source: Edward Jones
