Market Capitalization of the S&P 493 as Share of Index Total The 493 smallest stocks in the S&P 500 now account for just 67% of the index’s market capitalization, a record low. This reflects a…
S&P 500 and 10-Month Moving Average The S&P 500’s 2.78% gain in January, including dividends, underscores the strength of the cyclical bull market that began in late 2022. Current conditions suggest continued growth potential. Image:…
S&P 500 Performance When >2% YTD Return in January Bulls have reason to smile: historically, when the S&P 500 index rises more than 2% in January, it’s a good omen. Since 1951, such starts have…
Seven Largest Companies as Share of S&P 500 Total Market Capitalization The seven largest stocks in the S&P 500 index account for 33% of its total market capitalization. While this high concentration doesn’t necessarily predict…
Magnificent Seven and S&P 500 – 12-Month Trailing EPS The Magnificent 7’s future growth is expected to moderate after their exceptional recent performance. While they will remain key market leaders, their rate of expansion is…
World Technology Earnings The consistent outperformance of the technology sector since 2010 is largely due to its strong profit growth and the disruptive impact of advancements like artificial intelligence. Image: Goldman Sachs Global Investment Research
S&P 500 Top 5 Stocks’ Weight vs. 1-Year Forward Returns While the current high market concentration is a significant feature of today’s market landscape, it doesn’t necessarily predict poor performance in the near term. Image:…
ISABELNET Cartoon of the Day Bears hate a strong January, which is widely seen as a bullish sign for stocks. Historically, when the S&P 500 rises in January, it tends to be a reliable predictor…
S&P 500 vs. Forward Earnings Estimates While the outlook for corporate earnings in 2025 remains positive, the elevated market valuations mean that companies will need to deliver on these high expectations to sustain the bull…
Cyclicals vs. Defensives Performance Cyclical sectors’ strong performance suggests economic optimism, but investors must be cautious about potential overvaluation and risks, especially when buying cyclical stocks late in the economic cycle. Image: Goldman Sachs Global…
Nominal S&P 500 Earnings Growth – Nominal GDP Growth The rapid acceleration of U.S. corporate earnings growth over the past three decades, which has outpaced the broader U.S. economy, is a key factor behind today’s…