🤯 The Hidden Engine Powering the US Economy
Everyone is talking about interest rates and inflation, but here’s the underappreciated truth: The average US household’s net worth has silently exploded thanks to unbelievable equity returns over the last five years. 📈 That extra few hundred dollars on discretionary spending? It’s mentally offset by a stock portfolio that's sitting significantly higher. The Takeaway: This "wealth effect" isn't just a coincidence, it's likely among the reasons why the long-predicted recession keeps failing to materialize. When people feel richer, they spend! Source: Boring_Business @BoringBiz_
US small-caps at a turning point?
Source: J-C Parets
Update: the world didn't end. New all-time closing high
Source: Charlie Bilello
SMALL IS BIG...
The Russell 2000 US small-caps index is extending the break out move. This looks like an inverse head and shoulders formation. Plenty room to run before we reach trend channel highs. Source: LSEG, The Market Ear
US cyclicals vs. defensives up 13 days in a row.
Goldman's Coppersmith: "You don’t get moves like this unless the market is starting to lean into a better growth outlook". Source: LSEG, The Market Ear
They are all cutting target price on Oracle $ORCL...
Goldman PT New $220, Old 320 JPMorgan PT New $230, Old 270 Cantor PT New $320, Old 400 Barclays PT New $310, Old 330 Evercore PT New $275, Old 385 Scotiabank PT New $260, Old 360 TD Cowen PT New $350, Old 400 Melius PT New $260, Old 400 Source: zerohege
The Dow started trading on May 26, 1896.
Yesterday it closed at the highest level ever. Congrats to investors who used the events on this chart as reasons to buy, not panic. Source: Ryan Detrick
Oracle $ORCL is exposed to massive concentration risks..
It has $125 billion debt, of which $25 billion is due in three years. Meanwhile, FCF is already negative, and its largest customer, OpenAI, needs to raise $207 billion by 2030 to meet its obligations. Source: Oguz O. | 𝕏 Capitalist 💸 @thexcapitalist FT
