Most Shorted Stocks Relative to Russell 3000 Heavily shorted stocks generally underperform the broader market over the long term, but in 2025, they significantly outperformed, driven primarily by aggressive short covering. Image: Deutsche Bank Asset…
Recession – U.S. Real Retail Sales U.S. real retail sales and consumer confidence trends indicate cautious and subdued consumer spending growth, which has historically been linked to an increased risk of recession. Image: Real Investment…
S&P 500 – Hedge Funds vs. Retail Investors The contrast between hedge funds taking short positions and retail investors being long is often seen as a warning of potential equity market weakness over the next…
S&P 500 Cyclical-Adjusted P/E Ratio vs. Net Private Foreign Inflows to U.S. Equities If foreign capital inflows weaken or reverse, U.S. stock valuations could come under downward pressure as investors reassess risk amid high prices…
Quarterly Capital Raised by SPACs In the first half of 2025, Special Purpose Acquisition Companies raised $12 billion—a significant increase from the same period in 2024—though still considerably less than in the first half of…
S&P 500 Market Capitalization to Real Disposable Personal Income The S&P 500’s market capitalization relative to real disposable personal income has reached a record high of 28 times, surpassing the previous peak of 25 times…
S&P 500 Four-Year Cycle The behavior of the S&P 500—peaking in early August with a softer year-end rally—is a typical post-election year trend observed historically in U.S. presidential election cycles. Image: Ned Davis Research
Performance of the Magnificent Seven Stocks Following a period of underperformance, the Mag-7 index has almost caught up to the S&P 500, reflecting regained investor confidence in U.S. AI giants despite the challenges posed by…
Equity Risk Premium and S&P 500 Valuations The current U.S. equity market’s expensive valuations are more grounded in earnings reality than during the late 1990s, but investors should remain cautious due to limited downside protection…
Equity Style Flows Call and put writing strategies have attracted strong inflows over the past 12 months and continue to be popular for their ability to generate income and manage downside risk. Image: J.P. Morgan…
Valuation – S&P 500 Forward Price-to-Earnings U.S. stocks are trading near their post-pandemic peak levels, leaving little margin for error and increasing the market’s vulnerability to negative news despite ongoing optimistic drivers. Image: Bloomberg