Goldman Sachs on the mixed impact of corporate stock splits
“Share prices typically rise after a firm announces a stock split. In theory, there is no change in the underlying value of a company when it splits its stock. However, empirically, the academic literature has generally found positive announcement effects around stock splits. We consider a sample of 46 Russell 1000 firms that completed stock splits since 2019. On average, these stocks generated a 4 pp excess return vs. the equal-weight S&P 500 in the week following stock split announcement. However, the stock price did not evidence a clear reaction after the stock split took effect. In addition, because many companies announce stock splits alongside earnings releases, it can be challenging to know how much of the stock rallies are due to the stock split as opposed to strong earnings results”. Source: Goldman Sachs
Goldman and Bank of America expect another bounce as July Communist Party meeting seen including more support measures.
Source: South China Morning Post
Small cap stocks are now down on the year while Large caps are still up 12.5%. $SPY $IWM
Source: Charlie Bilello
Below is an extract of a great chart pack by Topdown Charts / Callum Thomas
https://lnkd.in/eCV4GauM Over the long-run equal-weight has beat cap-weight, but there have been significant punctuations and cycles around that trend that echo important sector themes.
Reckless Trading
Source: WSJ
World's largest companies by market cap & the most valued companies
Source: Reza Zahiri
A staggering percentage of US equity funds are underperforming the S&P 1500.
The longer the time period the higher the percentage of underperformers. Source: Charlie Bilello
The top 10 largest stocks in the world are now worth a combined $18.85 Trillion up from $18.21T last week.
Source: Evan
