S&P 500 Performance After 10 Days or More of Decliners > Advancers Bulls are smiling again! Since 1974, when the S&P 500 had more decliners than advancers for 10 or more consecutive days, it has been positive 100% of the time over the following 12 months, with an average gain of 17.9%. Image: Carson Investment…
The World Economy – GDP by Country The United States has maintained its position as the world’s largest economy for over a century and is projected to continue this trend in 2025, unless, of course, aliens land and demand a trade deal! Image: Visual Capitalist
S&P 500 – Top 10 U.S. Companies by Market Capitalization Relative to Total The dominance of the top 10 U.S. companies in the S&P 500 Index raises concerns about the index’s ability to provide adequate diversification for investors. Image: Societe Generale Cross Asset Research
U.S. Debt to GDP Ratio The projected surge in U.S. federal debt over the next three decades may adversely impact the economy, resulting in elevated interest payments, strained resources, and possible constraints on economic growth and government flexibility. Image: Deutsche Bank
U.S. Corporate Bond Spreads U.S. corporate bond spreads are currently at historically tight levels, suggesting potential bubble-like conditions. While a major correction is not guaranteed, several factors indicate rising risks in the first half of 2025. Image: Alpine Macro
Annual Total Returns While most markets average 5-10% returns annually, positive years can push this average to 10-15%, highlighting the potential for higher gains during favorable market conditions. Image: TS Lombard
U.S. Equity ETF Flows Inflows to U.S. equity ETFs as a percentage of S&P 500 market cap have reached elevated levels, reflecting strong investor confidence in U.S. equities. Image: J.P. Morgan Positioning Intelligence
Federal Debt Outstanding % GDP and Federal Interest Payments % GDP Recent interest rate cuts are easing federal interest expenses but raise concerns about long-term fiscal sustainability, as interest payments are expected to increase significantly in the future. Image: TS Lombard
ISABELNET Cartoon of the Day While bulls have faced significant challenges this week due to limited rate cuts in 2025 and market volatility, bears are finding reasons to be optimistic about potential corrections in the near future. Happy Friday, Everyone! 😎
U.S. Money Market Funds Following the Fed’s first rate cut, U.S. money market funds typically experience outflows within 12 months as investors rebalance portfolios and reassess risk in response to changing interest rates and market conditions. Image: Federal Reserve Bank of St. Louis
Implied Fed Funds Target Rate The Fed has revised its 2025 projections, now anticipating only two rate cuts instead of four, with future reductions dependent on the progress made in managing inflation. Image: Bloomberg