The $VIX ended the day at 30, its highest close since August 5, 2024.
Fear is on the rise and stocks are on sale, providing more opportunities for long-term investors. Source: Charlie Bilello
Oh, the irony.
Source: TrendSpider @TrendSpider
Despite the pullback, the S&P 500 is still NOT cheap:
As shown below, the US stock market is expensive or very expensive on 12 out of 13 valuation indicators, according to Charles Schwab analysis. Metrics like 5-year normalized P/E, P/B or Shiller's CAPE are still historically elevated despite the sell-off. Source: Charles Schwab, The Leuthold Group, Bloomberg thru Global Markets Investor
Bull markets that make it past the two-year mark have typically consolidated in year three before heading higher again.
Source: Bespoke
Germany is the european country the most sensitive to global trade according to Goldman - see chart below
According to Goldman Sachs, the Dax and MDax have a beta of 1.9 to world trade growth — meaning they tend to move almost twice as strongly w/changes in global trade. That’s much higher than the US market, which has a beta of 1.4. In contrast, the UK’s FTSE 100 is less exposed to global trade, thanks to its defensive sector mix and the UK’s services-driven economy. The Swiss SMI is similarly more insulated. It’s also a defensive index, and Swiss exports are generally less sensitive to global demand, as they often consist of high-tech, specialized products. Source: HolgerZ, Goldman Sachs
OpenAI is now the world's second most valuable private company
Source: Markets & Mayhem @Mayhem4Markets
What's your favorite US mega-cap here?
Source: Bespoke
The SP500 clawed back earlier losses on Monday to end the session higher after briefly touching six-month low.
However, the tape wasn't all that bullish despite the big reversal. Indeed, Tech completed a top relative to $SPY while defensive stocks completed a bottom. Not the kind of risk appetite you want to see on a rally. Source: Steven Strazza
