Equities have rallied significantly since the Fed pivot, followed by increased levels of speculative action in crowded stocks. ... Read More
Passive ownership of stocks has exploded since the Great Financial Crisis spurred by low-cost ETFs and mutual funds. ... Read More
Stocks have surpassed all-time highs and volatility has remained quiet in 2024 as the US economy breezes past calls for a recession. Sticky inflation and higher rates can change things. ... Read More
Other automakers are catching up to Tesla... Read More
U.S. equity net issuance fell by $197 billion in the fourth quarter.... Read More
Nvidia's stock has seen a massive surge in speculative and leveraged activity. It also saw a big reversal on Friday. What comes next matters for the entire market.... Read More
U.S. stocks account for almost half of global equities' market capitalization.... Read More
We have argued in the past that Cathie Wood and the ARK ETFs, headlined by ARK Innovation (ARKK), were arguably the most important manager/complex on Wall Street. After their outstanding performance in 2020, these funds have drastically underperformed.... Read More
S&P 500 valuations look stretched no matter what way you slice it. How much more optimism can drive equities higher?... Read More
Microsoft recently overtook Apple as the largest company in the world by market cap.... Read More
The S&P 500 rose 24% in 2023 but was up only 10% at the start of November. Retail options positioning did not experience its usual rise during the market rally. ... Read More
Sentiment is an important measure to gauge future expectations for market moves. The caveat, however, is sentiment is often correlated to what has happened in the market recently.... Read More
ETFs represent an important part of equity markets, allowing everyday investors to capture different types of market strategies with just one investment and minimal fees. These are most often passive investments (allocators), yet active ETFs (traders) have become more common in recent years. ... Read More
How does the relationship between valuations and future stock returns change as the holding period lengthens?... Read More
U.S. equity net issuance rose by $110 billion in the third quarter.... Read More
Traders reached as far out the risk curve as they could in November, piling into some of the most speculative stocks they could find.... Read More
Although stock valuations have come down over the past couple years, they remain high by historical standards. Expectations on future long-run stock returns must be tempered.... Read More
S&P 500 valuation levels would be okay for a growing economy, but elevated levels are troublesome when heading into slower economic growth. ... Read More
U.S. equity net issuance shrunk by $74 billion in the second quarter.... Read More
U.S. equity net issuance shrunk by $517 billion in the first quarter.... Read More