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: In the past few decades, the highest-growing half of S&P 500 industries have steadily outperformed the 50 slowest-growing
Source: Raymond James as of 08.29.2023
Dave: which has lifted valuations as cap-weighted indexes tilt in the direction of higher-growth industries
Source: Goldman Sachs as of August 2023
John Luke: The prevalence of growth-oriented sectors is a big reason for US dominance since the global financial crisis
John Luke: and resulted in large disparities between valuations of US stocks and international ones
Source: Bernstein as of 08.28.2023
John Luke: Earnings estimates are now far lower than they were a year ago
Source: Bernstein as of 08.28.2023
Brad: but stable enough to have avoided the feared earnings recession
Source: Strategas as of 08.28.2023
John Luke: Credit delinquencies are rising for young Americans
Source: Pavilion as of Aug 2023
Joseph: but corporate credit spreads remain tight
Source: Strategas as of 08.28.2023
John Luke: and a flood of private equity money is on hand to provide liquidity in any slowdown
Source: Strategas as of 08.28.2023
Joseph: US capital spending is surging
Data as of August 2023
Dave: contributing to the largest multi-year GDP rise in decades
Data as of July 2023
John Luke: US home prices are back to their highs after a slight dip
Data as of July 2023
Brad: which, combined with higher rates, has led to a significant rise in the monthly expense of buying a home
Source: Strategas as of 08.28.2023
Dave: leading to a major dip in new mortgage applications
Data as of August 2023
Beckham: Stocks and bonds have moved in tandem much more than usual this year
John Luke: revealing the imperfect nature of bonds as a diversifier to stocks
Source: BoA as of 08.28.2023
Dave: Worth repeating, we need a light hurricane season to avoid compounding the already tight situation in crude supply
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