FAT over AI: the match...
while headlines are all about artificial intelligence darling Nvidia, the weight-loss drugs champions Eli Lilly and Novo Nordisk stocks performance has been spectacular as well. Two year chart shows that $LLY is well ahead of "hot" $NVDA...and $NVO is practically "there"... Source: The Market Ear, Refinitiv
Hedge Fund YTD returns by strategy as of August 2023
Source: www.aurum.com
SoftBank's $ARM IPO is coming up
The chip designer aims to raise ~$5B, targeting a valuation of $50B-$55B. It's the largest US IPO since $RIVN in 2021. Note that SoftBank’s $50bn flotation of Arm is more than five times oversubscribed, according to bankers pitching investors on the biggest initial public offering in nearly two years, as the UK-based chip designer forecast accelerating revenue growth boosted by the artificial intelligence boom. Despite investor concerns about a drop in profits in Arm’s most recent quarter amid a smartphone industry slowdown and the company’s exposure to multiple risks in China, advisers working on the Nasdaq listing said there was “little price sensitivity among investors”, many of whom would be forced to buy because of Arm’s inclusion in indices. Here's a snapshot of its FY 2023 income satement by App Economy Insights
Out of 28,114 publicly-listed U.S. companies analyzed over the last century, the 25 best stocks have created nearly a third of all shareholder wealth
Put another way, as Visual Capitalist detail below, just 0.1% of stocks have added over $17.6 trillion to investors’ wallets. This graphic, using data from Henrik Bessembinder of Arizona State University, show the best stocks of the last century.
India Nifty 50 Index. Big picture, via 5% box size
Source: Mark Ungewitter
An important chart
Source: J-C Parets
Technology stocks now reflect a record ~25% of all equity fund assets
Just 8 years ago, technology stocks only reflected just ~9% of all equity fund assets. Meanwhile, 5 stocks currently account for ~70% of the Nasdaq's gain this year. Technology stocks have become the backbone of the stock market. Source: The Kobeissi Letter
European stocks are becoming very disconnected from macroeconomic data
Source: Cheddar Flow, Bloomberg
