Is diversification a thing of the past? The sp500 has significantly beaten money managers who diversify investments globally in 13 of the last 15 years
The only 2 years where diversification worked over this period were 2012 and 2023. Such a streak has never happened before. During the 15-year timeframe, the largest outperformance by the S&P 500 occurred in 2015, by nearly 30%. Meanwhile, the S&P 500's return has exceeded global investment assets by 15% year-to-date. Source: The Kobeissi Letter, Bloomberg
For nearly a decade, this group traded in a very narrow price-to-sales range, but it's different this time???
Source: Lawrence McDonald, Bloomberg
The market cap of technology stocks as a percentage of the S&P 500 just hit a record 44%
This percentage is now ~12% higher than after the 2000 Dot-com bubble peak of 32%. Over the last 10 years, this share has more than DOUBLED. Also, since 2014 Nasdaq 100 has added 426% compared to a 182% gain in the S&P 500. Are tech stocks set to account for the majority of the S&P 500? Source: The Kobeissi Letter
The best performing stocks in the SP500 this year...
Source: Charlie Bilello
Mag7 stocks have added $2.3 trillion in market cap in Q2 so far... while the 493 other stocks in the S&P 500 have lost $720 billion...
Source: www.zerohedge.com, Bloomberg
$NVDA, the road to $3,000,000,000,000
Great visual by Quartr 👌
As highlighted by Sentiment Trader, market breadth for Nasdaq 100 QQQ is indeed a growing concern
The Nasdaq 100 continues to notch record high after record high. Many of its stocks are not only lagging, but they're falling to monthly, quarterly, or even yearly lows and below their 10-, 50-, and 200-day moving averages. This is not normal. In fact, it's never happened before to this degree. There is a possibility that the average stock will catch up to the index, that is not how things usually pan out. Almost never, in fact. Risk is high in that index.
These look like trailing P/Es but the visual emains impressive
Source: Jeff Weniger
