Equity futures spiked while bond yields dropped yesterday after the close after US Treasury unexpectedly slashed borrowing estimates:
- For Q1, US Treasury now expects to borrow "only" $760 billion in debt, which is $55 billion lower than what it expected in October 2023, and is about $30BN below wall street estimates. The difference the Treasury explained is "largely due to projections of higher net fiscal flows and a higher beginning of quarter cash balance." In other words, Treasury expects higher taxes to more than make up the $55BN difference from the previous estimate. - For Q2, the Treasury now expects to borrow only $202 billion in debt. While there was no previous Treasury forecast for this period, Wall Street expected a number somewhere in the $500BN vicinity, so clearly this is far lower than preciously expected. Source: Bloomberg, Chris Middleton, Lawrence McDonald, www.zerohedge.com
The SP500 is expensive
Source: Win Smart, BofA
investing
Source: Win Smart, CFA
"Australia (67%) and Canada (74%) have the highest percentage of money losing companies in the world and Japan (15%) has the lowest" - via @AswathDamodaran
Source: Charlie Munger Fans
Chinese Stocks have fallen to a P/E Ratio of just 8, their lowest valuation in a decade 👀
Source: Barchart, Bloomberg
This US equity bull market doesn't care about earnings misses...
Despite the fact that >20% of SPX companies have missed, on average, they are still getting rewarded for it. Source: TME, Jefferies
The "Deutsche Mag 5" -> Germany has its version of Magnificent 7 stocks
An index consisting of SAP, Siemens, Allianz, Munich Re, and Deutsche Telekom has outperformed the Dax Price Index by almost 90ppts over a 10y period. Source: HolgerZ, Bloomberg, TME
Germany has its version of Magnificent 7 stocks">
Germany has its version of Magnificent 7 stocks">
NARROWNESS >>> The top 13 stocks have driven the whole of the S&P’s YTD upside with the top five contributing ~70%
Source: Bloomberg, TME
