As per The Kobeisi Letter >>> The S&P 500 is now up 34% in under 8 MONTHS
Since the October 2023 low, the S&P 500 has added 1,370 points or $11.5 TRILLION in market cap. In other words, the S&P 500 has added ~$1.4 trillion in market cap PER MONTH for the last 8 months in a row. This means that the S&P 500's return since October 2023 is now 3 times the average annual return. Nvidia stock alone, $NVDA, has added $2.2 trillion in market cap over this time period. That's ~20% of the S&P 500's market cap gains coming from just one stock...
Mag7 stocks have added $2.3 trillion in market cap in Q2 so far... while the 493 other stocks in the S&P 500 have lost $720 billion...
Source: www.zerohedge.com, Bloomberg
The market cap-weighted SP500 is outperforming equal weight index by over 10% this year, following 12% outperformance in 2023
Since 1971, we've never seen consecutive years with >10% outperformance. Source: Charlie Bilello
Almost 23 years ago, Standard & Poor's selected Nvidia to replace the departing Enron in the S&P 500 stock index...
Source: Michel A.Arouet
Momentum Trading is having the most success in history, even surpassing the Dot Com Bubble
Source: Barchart, Bloomberg
S&P 500 $SPX outperformed Global Stocks this week by the largest margin in 15 months...
Source: Barchart, Bloomberg
Only 30% of the SP500 stocks have outperformed the index year-to-date.
This is slightly higher than the 29% that occurred in 2023. Since 1990, a streak of 2 consecutive years with such a low percentage has happened only during the 2000 Dot-com bubble. By comparison, the historic median is 49% which typically implied healthy market breadth. The S&P 500 has rallied 12% year-to-date largely driven by just a few tech stocks. A few stocks are driving the entire market. Source: The Kobeissi Letter, Richard Bernstein Advisors
The Magnificent 7's share of the SP500 just hit another all-time high of 32%.
This is 12 percentage points higher than at the beginning of 2023. The weight of these 7 stocks in the index has almost DOUBLED in just over 4 years. This comes as the 3 largest stocks, Apple, Microsoft, and Nvidia, are all officially worth over $3 trillion. Meanwhile, the technology sector just hit another all-time high relative to the S&P 500. Tech is becoming even more dominant. Source: Bloomberg, The Kobeissi Letter
