The Market in Pictures, June 21

Our team looks at a lot of research throughout each day. A few charts that caught our eye this week, and the way they fit the unfolding puzzle of evidence:

Dave: Bigger stocks have been rewarded with higher valuations

Brad: and the dominance of the biggest of the big makes them huge components across commonly used funds

Beckham: that said, those big NASDAQ names have generally earned their leadership positions through consistent growth

Data as of May 2024

Brett: The other side of megacap domination is that very few stocks have been able to keep up with the S&P 500

Source: The Compound Media as of 06.18.2024

Arch: with the divergence between the broader market and the index a historical outlier

Joseph: and only 1998-99 eclipsing the current period for range of dispersion

Data as of 06.14.2024

Brad: We’re finally seeing a higher % of companies achieve strong year-over-year growth

Data as of 06.09.2024

JD: leading to a bit of a catchup in the “Growth” component of “Yield + Growth”

Brian: According to this indicator, risk appetite is returning for public fund buyers

Data as of 06.14.2024

Brett: though it appears that institutions are not at all interested in buying stocks after the rally

Data as of 06.14.2024

John Luke: but we know that sentiment and surveys can be a bit squishy, look here at the difference between what businesses are doing and how they feel

Source: NFIB as of 06.09.2024

John Luke: If you’re wondering whether this is a normal bear market for bonds, it’s not

John Luke: and after all of that we’ve just now reached the point where half of the components have returned to the Fed’s target rate for rising prices

Source: Strategas as of 06.17.2024

Brad: The continuing theme of the past year is the impact of artificial intelligence (AI), with NVDA as the poster child

Source: Goldman Sachs as of June 2024

Joseph: but its contribution to higher power consumption seems pretty clear

Data as of May 2024

Dave: Wall Street strategists will eventually chase prices higher but they’ve not fully caved yet

Source: Strategas as of 06.17.2024

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