ISABELNET Cartoon of the Day The S&P 500 may be breaking records, but bears are still singing the same old blues. Meanwhile, bulls are riding the market like there’s no tomorrow, which ironically, is what bears are predicting! Have a Great Day, Everyone! 😎
S&P 500 Profit Margin Profit margin growth in the S&P 500 is broadening, extending beyond mega-caps and the tech sector. This trend is expected to continue in 2025, indicating a healthier and more diverse market outlook. Image: Societe Generale Cross Asset Research
Equity Net Long Positioning – Leveraged Funds and Asset Managers Net Future Positions Leveraged funds and asset managers continue to maintain significant net long positions in U.S. equity futures, despite showing some reduced bullishness. Image: Goldman Sachs Global Investment Research
ISABELNET Cartoon of the Day When asked to choose between the Gulf of America and the Gulf of Mexico, the ocean smiled and replied, “The Gulf of Mexico has been called that since the 16th century. Some names are just timeless!” Happy “Hump” Day, Everyone! 🐫🐪😎
Sentiment – CBOE Equity Put/Call Ratio The current U.S. equity put/call ratio indicates a broadly bullish sentiment, implying that investors are confident about the market’s future performance, for now. Image: The Daily Shot
U.S. Breakeven Inflation Rate Breakeven rates, which reflect the market’s inflation expectations, suggest that the fight against rising prices is far from over and will likely continue in the foreseeable future. Image: Morgan Stanley Wealth Management
Fed Balance Sheet The ongoing reduction of the Fed’s balance sheet is expected to reduce bank reserves. This reduction may lead to higher inflation, increased real yields, and a steeper yield curve. Image: TS Lombard
Post-Election Day S&P 500 Returns While investors have responded positively to the election results, the true effects of new policies remain uncertain. The market’s robust performance is based on expectations, not realized economic outcomes. Image: Bloomberg
ISABELNET Cartoon of the Day The S&P 500’s 1.47% increase last week hasn’t dampened bears’ endless pessimism. Meanwhile, bulls are too busy celebrating a 4.11% year-to-date gain, including dividends! Have a Great Day, Everyone! 😎
Europe Equity Fund Flows European equity funds have experienced a surge in inflows, reaching a two-year high and indicating a notable shift in market sentiment. Image: Deutsche Bank Asset Allocation
S&P 500 Earnings Estimates Morgan Stanley forecasts S&P 500 earnings per share to hit $271 in 2025 and $303 in 2026, indicating a bullish market outlook. Image: Morgan Stanley Wealth Management