Small Cap Stocks $IWM are underperforming the S&P 500 by the largest margin since the Dot Com Bubble 🚨
Source: Barchart
The stagflation trade is proving to be a rare winner as the stock market rout continues.
The Goldman L/S Stagflation basket—which benefits from rising commodity & healthcare stocks while betting against consumer discretionary and chip stocks—has gained nearly 18% in 2025. Source: HolgerZ, Bloomberg
The S&P 500 fell 1.4% to a 6mth low, down 10.1% from recent high and so in correction territory.
First 10%+ drawdown since 2023. Source: Bloomberg, HolgerZ
SP500 corrections are usually good buying opportunities
Source: Mike Zaccardi, CFA, CMT 🍖@MikeZaccardi
Out of 56 SP500 $SPX 10% corrections since 1928, 22 became bear markets and 34 recovered...
Source: Special Situations 🌐 Research Newsletter (Jay) @SpecialSitsNews
Mind the gap...
WisdomTree launches first European-only defence ETF. In white >>> Wisdom Tree Europe Defence index In yellow >>> NYSE Arca Defense Index (DFI) Source: Bloomberg, HolgerZ
The resilience of the yellow metal shines through as Gold reaches an All-Time High
Comparatively, other assets have experienced drawdowns from their respective All-Time Highs: - Berkshire $BRKB: -4% - Gold Miners $GDX: -4% - S&P 500 $SPY: -8% - Oil & Gas $XLE: -9% - NDX $QQQ: -12% - Transports $IYT: -15% - Mag7 $MAGS: -18% - Software $CLOU: -18% - Bitcoin $XBT: -22% - Banks $KRE: -22% - SOX AI $SOXX: -24% - Home Builders $ITB: -25% - ARK $ARKK: -68% Data Source: Lawrence McDonald
Ferrari, which spun out from Fiat seven years before Porsche went public, has raced ahead in the (nearly) 10 years since it hit the market.
Unlike its German rival, the Prancing Horse has kept investors enamoured with measuredly infrequent supercar drops, impressive delivery figures, a loyal customer base, and (unlike other luxury titans) its relatively low exposure to China — though even “relatively low” can still be too high. Ferrari shares were up 760% from its 2015 IPO at Tuesday’s close. Source: Chartr
