AI mania is the only game in town as the real economy sinks.
Great chart from @WarrenPies highlighting the recent divergence. Source: Bob Elliott @BobEUnlimited
Here are the largest holdings in the S&P 500
Source: Leveraged shares, Evan
The Melt-Up
"However you measure it, tech stocks are on an all-time heater. This is one of the great bull markets we’ve ever witnessed. So now what? Source: Ritholtz @RitholtzWealth
The total value of the US stock market is now ~245% of the country’s GDP – far above the 100% level that Warren Buffett considers a sign of a market bubble.
Source: HolgerZ, Bloomberg
🚨 Such concentration has almost NEVER happened:
NVIDIA accounts for 8% of the S&P 500's market cap, the highest for any company in history. Microsoft’s and Apple’s shares are 6.5% and 6.0%, respectively. The top 10 companies represent a record 40% of the index's total value. Source: Global Markets Investor
🚨The S&P 500 has NEVER been this expensive:
The index Price-to-Sales (P/S) hit 3.6x, WAY above the 2000 Dot-Com Bubble peak of 2.1x. The Price/Book (P/B) ratio hit 5.6x, above the 2000 high of 4.6x. Forward P/E is 26x, the second-highest since the Dot-Com Burst. Source: Global Markets Investor
🚨 BYD’s profits just dropped 33% in Q3 — and it’s a wake-up call for China’s EV giant.
For years, BYD has been the unstoppable force in electric vehicles — outpacing Tesla in global sales and setting records for innovation in battery and autonomous tech. But the latest numbers tell a different story 👇 📉 Q3 profit: RMB 7.8B (~$1.1B) 📉 Down from: RMB 11.6B last year 📉 Below analyst expectations: RMB 9.6B 📈 Still up from Q2: RMB 6.36B So what’s happening? Beijing’s recent crackdown on price wars and supplier payment practices has cooled the once red-hot EV market. The aggressive domestic competition that fueled BYD’s growth is now under scrutiny — and that’s forcing the company to look overseas faster than ever. Earlier this year, BYD’s stock hit record highs after breakthroughs in charging and driverless tech. But since May, shares have fallen more than 30%. 🌍 The takeaway: China’s EV boom is maturing. The next phase of the race won’t be about who can build cheaper — it’ll be about who can go global, profitably. Source: FT
It took Nvidia 6,138 days to reach a $1T market cap.
Then just 597 days to reach $5T. Slow, then fast. $NVDA Source: Morning Brew
