Yesterday was one of the most distorted markets we've seen yet. Just 2% of the index contributed over 60% of the bullish momentum.
That means ONLY TEN companies were the cause of well over half of the move in $SPX yesterday. $NVDA single handedly contributed an additional 50bps to the return in $SPX. Source: Hedgeye
Market Breadth continues to look strong!
More than 72% of sp500 stocks are now trading above their 200D moving average. Source: Barchart
S&P, NASDAQ 100 & DJIA closed at RECORD HIGH
Source: Bloomberg
The chart is a log graph of $1 invested in the S&P 500 in the year 1950 by Personal Finance Club.
They listed all of the market crashes that were 15% or more. They removed the Y-axis, but it shows $1 growing to over $1,000! Note that there were many -10% corrections over the period but that only -15% and worse are listed below
UBS hikes its S&P 500 target to 5,400, highest on Wall Street
UBS raised its S&P 500 year-end target for the second time in little over a month, from 5,100 to 5,400. It argues that hot inflation driven by strong demand is actually positive for stocks. The new target, which is roughly 9% above current levels, is the highest on Wall Street. Source : ubs
Goldman Lifts S&P 500 Target to 5,200 on Profit Expansion
Goldman now sees the S&P 500 rising to 5,200 by the end of this year, raising his forecast by about 2% from the 5,100 level he predicted in mid-December. The new target implies a 3.9% jump from Friday’s close. Goldman’s 5,200 price target for the S&P 500 in 2024 is now among the highest on Wall Street, joining the ranks of Wall Street bulls. source : gs
According to GS, Index margins excluding “Tech” will only expand modestly in 2024.
source : gs, tme
This chart vividly shows the pronounced overvaluation of US equities versus the rest of the world.
It's important to emphasize that price-to-book is just one metric for comparison. Source: Bloomberg, Tavi Costa
