While equities took a beating Friday, bonds quietly broke out—closing above 5 months of trendzone resistance.
Right into PCE week… Interesting. $TLT Source: Trend Spider
⚠️Retail investors are buying US stocks at the fastest pace on RECORD.
Mom-and-pop investors flows into technology stocks have more than DOUBLED in just a few weeks. Institutional investors selling to retail as they chase stocks at record valuations. Meanwhile, individual investors have UNDERperformed the market for 3 years in a row. Source: Global Markets Investor, Goldman Sachs
⚠️Is cash trash in this market?
US equity mutual funds cash as a percentage of total assets hit a RECORD LOW of 1.3%. Cash levels are even lower than in early 2022 when the bear market started. There is not much powder left to put into stocks anymore. Source: Global Markets Investor
Nasdaq market capitalization to US M2 Money Supply has hit a RECORD 142%.
The ratio has DOUBLED over the last 5 years and even exceeded the Dot-com Bubble levels of ~130%. Equities rise has MATERIALLY outpaced the money supply increase. Source: Global Markets Investor
The S&P 500 is expensive on 19 out of 20 metrics, according to the BofA analysis.
Some metrics such as the Buffett Indicator (Market Cap to GDP ratio) are over 100% above historical averages. Source. Global Markets Investor
An interesting chart by stocktwit 👉 $PLTR insider transactions in 2024:
• Buys: $0 • Sells: $3,104,510,822.09 👀👀👀👀👀 Yesterday after the close, Palantir CEO Alex Karp has announced a new plan to sell $1.2 billion of stock. $PLTR 🔴 was down -12% in after-hours trading
"... a structural regime shift is finally happening within China's equity market..."
Morgan Stanley drops bearish China call. thru David Ingles on X
Interesting chart by Guilherme Tavares which calls for some caution on US equities:
1-Investors are extremely confident that stocks will go up 2-Individual allocation very high 3-Stretched valuation
