Gold is shining: Gold's global market cap to world GDP ratio reached a RECORD 16.7% in 2024.
This ratio has doubled in 10 years and quadrupled since 2001. Nominally, gold’s market value sits near an all-time high of ~$18.5 trillion. This comes as gold as posted an average annual return of +9.5% since 2000, making it one of the best performing major asset classes this century. Since the start of 2024, gold prices have hit 41 all-time highs and are up +33%. Source: The Kobeissi Letter
Surprise surprise...
energy has been by far the best-performing sector during the Biden administration. Source: HolgerZ, Bloomberg
An important remainder ahead of Trump inauguration:
"Don't let your politics get in the way of your investing. The market finds a way forward, regardless of who is in power. The market soared under both Trump and Biden, as it has under most presidents" - Peter Mallouk
The Market Cap of the largest 50 stocks relative to GDP is at 110%, the highest level in history, surpassing the peak of the Dot Com Bubble and the Global Financial Crisis...
Source: Barchart
As of Sept. 2024, Tesla led global BEV market share at 18%, down from 19% in 2023, per EV Volumes.
BYD rose 9 points since 2021 but may shift focus to hybrids in 2025. Legacy automakers like VW and Geely held 7-8%. In 2023, 14M EVs sold, but 84% of cars were non-electric. Source: Statista
Will we see a short-covering rally in bonds?
In case you missed it: - $TLT short interest is near RECORD highs, while... - TLT has seen massive outflows Bond market shorts are about to get squeezed. A rally in bonds could be bullish for stocks. Source: Subu Trade
Yesterday, the easing of US inflation fears sparked a huge surge higher in rate-cut expectations for 2025 (back up to 40bps from 28bps)...
Source: Bloomberg, zerohedge
BlackRock is eating the world:
Assets Under Management (AUM) grew by 15% to hit a fresh ATH at $11.55tn. BlackRock has raised $641bn in investor funds in 2024. Tally includes $390bn flowing into its ETF business overall, $226bn into equity funds, and $164bn into fixed-income. Source Bloomberg, HolgerZ
