Another Powell Fed Day
Incredible how closely today's action tracked the average. Source: bespoke (read "today" red line as yesterday)
Heat map of the S&P 500's $SPY performance so far in 2023
Source: Evan, Bloomberg
The 10 largest companies in the S&P 500 now make up 34% of the index with an average P/E ratio of 50x
This is the highest percentage since 2001 during the Dot-com bubble. Even in the 2008 bubble, this percentage peaked at ~26%. These same 10 companies have accounted for ~80% of the Nasdaq's entire rally this year. Markets are increasingly held up by a few stocks, particularly in the technology sector. Source: The Kobeissi Letter, Apollo
The $VIX ended the day at 12.82, its lowest close since January 2020
Source: Charlie Bilello
All S&P 500 gains this year came from the AI boom/mania, all other stocks are flat reflecting concerns about global economic slowdown
Source: Michael A. Arouet
The top 10 companies in the S&P 500 with outstanding credit ratings
Among them, Microsoft and Johnson & Johnson stand out as the only two companies boasting the highest AAA rating. Source: Genuine Impact
The sp500 P/E ratio used to be tightly correlated to the US 2 year yield (inverted on the chart), i.e the lower the 2 year yield, the higher the P/E ratio and vice versa
Well, this is no longer the case as a giant crocodile jaw has been forming. Which of the 2 will bind firts? Source. Jeroen Blokland, True Insights
The S&P 500 earnings yield minus risk-free cash rate (3-month treasury bill) has dropped to its lowest level (-90 basis points) in 23 years
Source: BofA
