US - Market Strategy 04 (Jul 25 - Dec 27)

[behappyalways]

Percentage Decline From Record High:
https://x.com/KobeissiLetter/status/1991919683746889912

[winston]

NEW HIGHS OF NOTE LAST WEEK

Travelers (TRV)... insurance
Hartford Insurance (HIG)... insurance
Johnson & Johnson (JNJ)... health titan
Eli Lilly (LLY)... pharmaceuticals
Biogen (BIIB)... biotechnology
Axogen (AXGN)... biotechnology
Castle Biosciences (CSTL)... diagnostics
Ross Stores (ROST)... discount retail
Enviri (NVRI)... environmental solutions

NEW LOWS OF NOTE LAST WEEK

Fiserv (FISV)... digital payments
Moderna (MRNA)... biotechnology
Adobe Systems (ADBE)... cloud services
Monday.com (MNDY)... software developer
Science Applications (SAIC)... IT services
Par Technology (PAR)... foodservice technology
Enphase Energy (ENPH)... energy storage
Wendy's (WEN)... fast-food giant
Booz Allen Hamilton (BAH)... defense contractor

Source: Daily Wealth

[winston]

Amid AI frenzy, concerns mount over sustainability of equity rally as valuations continue to soar

The bulls say the AI boom is unlike the dotcom boom in that the main players this time are extremely profitable giants such as Microsoft, Alphabet, Amazon and Meta

The “Magnificent Seven” mega-cap stocks are still trading at absurd valuations, just like the dotcom players did in the late-1990s.

by Rob Curran

“The rapid pace of debt transactions has added to investor concerns over the sustainability of the AI-driven equity rally amid elevated valuations, raising questions over big tech’s ability to fund their AI expansion as monetisation continues to lag.”

Microsoft is currently trading at around 37 times its trailing 12 months’ earnings.

The Magnificent Seven are already in correction territory, roughly 10 per cent below their all-time highs less than a month ago.

If the bulls are right, this is a buying opportunity. If the bears are right, however, the carnage may only be beginning.

Source: Business Times

https://www.businesstimes.com.sg/compan ... tinue-soar

[behappyalways]

The S&P 500 is at its highest price to book value ratio ever.
https://x.com/dividendology/status/1994212783525670917

[winston]

HIGHS AND LOWS

NEW HIGHS OF NOTE LAST WEEK

Welltower (WELL)... health care REIT
Cogent Biosciences (COGT)... biotechnology
Eli Lilly (LLY)... pharmaceuticals
Madrigal Pharmaceuticals (MDGL)... biopharmaceuticals
Medtronic (MDT)... medical technology
Applied Materials (AMAT)... semiconductors
Lumentum (LITE)... telecom equipment
New York Times (NYT)... media
Las Vegas Sands (LVS)... casinos and resorts
Hilton Worldwide (HLT)... hotels
Hasbro (HAS)... toys and games
Vita Coco (COCO)... coconut water
Macy's (M)... mall retailer
Ralph Lauren (RL)... iconic apparel
Ross Stores (ROST)... discount retail
Restaurant Brands (QSR)... fast-food brands
Monster Beverage (MNST)... sports drinks
Barrick Mining (B)... gold
Cummins (CMI)... diesel engines
General Motors (GM)... automaker

NEW LOWS OF NOTE LAST WEEK

Cbiz (CBZ)... financial software
Nutanix (NTNX)... cloud software
PagerDuty (PD)... IT systems
MakeMyTrip (MMYT)... travel services
Copart (CPRT)... "junkyard giant"

Source: Daily Wealth

[winston]

Don't panic-sell but reassess allocations

The cautious investor might want to lighten up on the companies with heavy exposure to stretched households.

That group would include industries like mass-market restaurants, discretionary retail, subprime credit and auto finance.

Trimming positions in high-flying AI stocks might also be a prudent course of action. Because many of these stocks are “priced for perfection,” even small doses of bad news can cause outsized selloffs.

Source: Investor Place

[behappyalways]

The inglorious S&P 493 are up just 132% since 2019 vs the Mag 7, which clocked an astounding 1,057% gain
https://x.com/Mayhem4Markets/status/1995877397141307793

[winston]

HIGHS AND LOWS

NEW HIGHS OF NOTE LAST WEEK

Citigroup (C)... financial giant
Goldman Sachs (GS)... financial giant
Royal Bank of Canada (RY)... financial services
Toronto-Dominion Bank (TD)... financial services
Wells Fargo (WFC)... financial services
Analog Devices (ADI)... semiconductors
Applied Materials (AMAT)... semiconductors
Lumentum (LITE)... telecom equipment
Estée Lauder (EL)... cosmetics
Ulta Beauty (ULTA)... cosmetics
Walmart (WMT)... discount retail king
Dollar General (DG)... discount retailer
Caterpillar (CAT)... construction equipment
General Motors (GM)... automaker

NEW LOWS OF NOTE LAST WEEK

SentinelOne (S)... cybersecurity
CorVel (CRVL)... risk-management solutions
Cinemark (CNK)... movie theaters
McCormick (MKC)... spices
Gaming and Leisure Properties (GLPI)... gaming REIT
American Homes 4 Rent (AMH)... residential REIT
Alexander & Baldwin (ALEX)... commercial real estate
Invitation Homes (INVH)... rental-home REIT
MGE Energy (MGEE)... utilities

Source: Daily Wealth

[behappyalways]

BofA wealth management clients hold 65% stocks, near a record high.

Just 10% cash, near a record low.
https://x.com/MikeZaccardi/status/1999428641126502583

[behappyalways]

"More than 30% of U.S. market capitalization now trades
above 10x sales" via
@GMOInsights
https://x.com/MebFaber/status/2001713954058571783