Latest Bianco research presentation highlights Big Tech risk:
The current top 5 companies by market cap make up ~26% of the S&P 500, The last time the top 5 had a greater concentration in the S&P 500 was 1964 w/AT&T, GM, Exxon, IBM, Texaco. Source: HolgerZ
Gold hit record high 2'135.39/oz in early trading hours
Gold surged to a new all-time high as growing expectations for US rate cuts early next year. This latest leg of gold's rally has been turbocharged by comments on Friday from Fed Chair Jerome Powell. Precious metal's strength has been underpinned buy other factors as purchases by governments and central banks as well as geopolitical uncertainty.
Global Money Market Funds All-Time High 🚨:
A record high $8.3 Trillion is parked in global money market funds according to Goldman Sachs. $5.73 Trillion of this are U.S. based funds. As global central banks cut rates, could this capital find its way back into equities? Source: Barchart
Some investors are worried about VIX index being too low, i.e markets are too complacent
The chart below is a good reminder that a "low VIX" is a normal part of bull markets. Investors seem to always forget this. Source: Mark Ungewitter, Ryan Detrick
As of the end of October, investor's sentiment index was almost at maximum fear
But November turns out to instead be among one of the greatest months in stock market history. Source: J-C Parets
Massive change over the past 5 weeks when it comes to what the market is pricing from FED
Source: TME, Bloomberg
Nvdia in a virtuous cycle?
As highlighted, by Kakashii, Nvidia is somewhat fuelling their own growth by investing in AI startups which will purchase their AI chips! Indeed, Nvidia is one of generative AI’s most active investors. Let's review some of the deals the chipmaker is backing. Behind the scenes, Nvidia has been investing heavily in generative AI companies. The chipmaker’s overall deal activity has climbed dramatically in 2023 (see chart below)
November has been a very long month of frustration for the bears
Source: Trend Spider
