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17 Jan 2025

Over a third of the S&P 500 is now concentrated in the "Magnificent Seven" stocks, up from a fifth of the index two years ago.

Source: Charlie Bilello

16 Jan 2025

Earnings do matter

Source: Investment Strategy Group, Bloomberg, S&P Global

15 Jan 2025

SP500 companies’ revenue per worker.

Source: Eugene Ng on X, BofA

15 Jan 2025

Since 1950, the S&P 500 has had an average intra-year drawdown of -13.6% but is still up 11.6% per year annualized.

No Risk, no Reward. Source: Peter Mallouk @PeterMallouk

15 Jan 2025

Shocking stat of the day: The market cap of the SP500’s top 5 stocks is now equal to the size of the bottom 407 stocks.

Apple, $AAPL, Nvidia, $NVDA, Microsoft, $MSFT, Google, $GOOGL, and Amazon, $AMZN are worth now a combined $15.3 trillion. These companies have added $5 TRILLION in market value since the beginning of last year. To put this into perspective, these 5 stocks are worth now nearly as much as China and Hong Kong's stock markets COMBINED. The top 5 companies reflect a record 24% of the entire US stock market cap. Source: Compound, The Kobeissi Letter

15 Jan 2025

Actual S&P 500 earnings growth has exceeded expectations during the last few years.

Will it be the case again this quarter? Source: The Market Ear, Factset

13 Jan 2025

BREAKING: The difference between the S&P 500’s earnings yield and BBB-rated corporate bond yield has dropped to -1.9%, the lowest in 15 years.

Excluding a brief period in 2009, this is the lowest level in 23 years. The gap has fallen by 4 percentage points over the last 5 years as US interest rates have risen sharply. In other words, less risky investment-grade corporate bonds now pay a higher yield than S&P 500 companies' profits relative to their stock prices. This metric suggests the market may be overvalued. Can this gap continue to widen? Source: Bloomberg, The Kobeissi Letter

10 Jan 2025

Breadth matters. And what we currently see on us equities does not look healthy.

Here is a visual of the % of stocks outperforming the S&P500: ALL TIME LOWS. In other words, concentration risk measured in this way beats 2000 lows. Source: Samantha LaDuc on X, GS

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