"The stock-bond correlation switch is the ultimate diversification regime shift."
"You don't have as great a need for alternatives when the correlation is negative. Investor search for diversification should be at a heightened level." Source: BofA, Darren
$BABA Alibaba free cash flow vs share price
Source: KoyfinCharts
Is the US stock market becoming THE world stock market?
Source: Sam Ro
BANK EARNINGS >>> Bank of America $BAC stock is down -4% today after reporting earnings down -18% yoy.
$BAC Bank of America Q1 FY24. Revenue -2% to $25.8B ($0.4B beat): • Net Interest income: $14.0B (-3% Y/Y). • Noninterest income $11.8B (-0% Y/Y). Net Income $6.7B (-18% Y/Y). Non-GAAP EPS: $0.83 ($0.06 beat). CET1 ratio of 11.8%. Source: App Economy Insights
Goldman is embracing the rotational trade as well:
"Sell your Tech Stocks and invest elsewhere" says Goldman Sachs
US stocks are expensive. That is true, but it is mainly due to tech.
If you look around you'll notice that areas like the cyclicals (energy, financials, materials, and industrials) are all fairly valued and in some cases outright cheap. Source: Carson Investment Research
Below the relative chart of oil ETF $USO vs. S&P 500 ETF $SPY and the relative chart of oil stocks XLE vs. S&P 500 ETF $SPY.
Both just hit a 4.month relative high Source: J-C Parets
Small speculators in stock indexes have reached their most bullish net position ever.
Source: WinSmart
