Who did it better? $NVDA or $CSCO in 2000?
On this day in 1996: Apple cover story “The Fall Of An American Icon.” Source: Jon Erlichman
Expensive for a reason...
Since December 2019, the Magnificent 7 stocks collectively delivered a 28% annualized return. Of this, approximately 27% is attributable to earnings growth (21% sales growth and 6% margin expansion) with only 1% due to multiple expansion. In contrast, earnings drove only 13% of the S&P 500’s 17% annualized return since 2019. Looking forward, Goldman expect revenue growth will be the key driver of returns for the Magnificent 7 stocks. Bottom-up consensus expects the seven companies will collectively grow sales at a 12% CAGR through 2026 compared with an 3% CAGR for the remaining 493 companies in the S&P 500 index.
BREAKING: WILD morning in Chinese markets. Nearly 30% of all stocks in China have been halted as China's CSI 1000 index slides 8% in a matter of hours.
CSI 1000 was down nearly 9% at one point. The more broadly tracker indexes CSI 300, HSI, HSTECH reversed most losses in the morning Source: Bloomberg, David Ingles
Friday's market action tells a lot about what's currently going on
1) US large-caps equities index recorded strong gains ($SPX +1.07%; $NDX +1.69%) thanks to huge advance by $META (+20%) and $AMZN (+7%); 2) Underneath the surface, there is some selling taking place - the S&P 500 equally weight is DOWN -0.08% on the day. We need to see decent market breath for the equity bull market extend as the mag7 (or rather the "mag 4" as leadership is even more narrow than in 2023) will not be able to carry the market forward for ever... Source: Bloomberg
Chinese stocks
Source: Ayesha Tariq, CFA
European stocks are currently trading at their lowest valuation relative to U.S. Stocks in history
Source: Win Smart, IBES
Equities have left central bank balance-sheet behind...
Source: UBS, TME
The weight of the 10 largest sp500 stocks is now 33.1% of the total $SPX, the highest level in almost 5 decades.
Source: Barchart
