Wealthyhood’s Post

There have undoubtably been times in US equity market history where valuations took a backseat to price action and enthusiasm, but I’m not quite sure there’s ever been this little care given towards valuation metrics that have withstood the test of time. The below charts contain the current price/earnings & price/sales ratios of the “Enormous 8”, as well as the S&P 500 composite average. For all those who continuously make the strong case performance of monopolistic tech mega-caps is justified given their priced at fair market valuations, I continue to personally struggle finding any quantitative data to support that assessment. I think it’s worthwhile to remind market participants these are not “brand new” companies who’ve developed something extraordinary that may have extreme growth potential. In my view, investors are overpaying in an attempt to chase a backwards looking dream. Apple, Microsoft, & NVIDIA have a combined market cap of about $10T (Trillion). Can anyone explain what’s not priced into that monstrous valuation yet? Guess time will tell. Sources: OVOM Research, FactSet #Research #Economy #Markets #Macro #Equities

As an AI-driven feeding frenzy of tech stocks combine with ongoing uncertainty over Fed policy and inflation, co-chief investment officers Wally Weitz and Brad Hinton break down how we're looking to lessons from the past and assumptions about the future to help inform our investments. Read the latest Value Matters here: #investing #AI #stocks https://hubs.la/Q02HRP4z0

Our latest Quarterly Insights article is out and available to read below. 👇🏼 We note that risk assets had a robust Q2, driven primarily by US large-cap tech, particularly Nvidia as t briefly became the largest company in the world. The AI-driven rally continues as markets look towards the productivity benefits AI promises. A comparable surge can be seen with Swifties, as Taylor Swift draws massive crowds worldwide. Her Eras tour has become the highest-grossing tour of all time, generating over $1 billion in ticket sales in 2023 alone, with 2024 expected to match or exceed this figure. Whilst Swifties, GenAI and Nvidia have kept risks out of sight and out of mind, we remain cautious that underlying risks still exist and advise investors to proceed prudently. We also revisit key drivers of economic growth and inflation, explore the impact of policy decisions and market forces, and share our outlook and expectations for the future. #economy #finance #market #swifties #AI

Analyzing the present market trends, we're seeing a definite shift. The once mighty Big Tech suffered considerable losses, notably with Tesla and Nvidia leading the downfall. A stark contrast to the +0.36% uptick in the FTSE 100 and the Russell 2000 enjoying a +3.57% boost. Keeping an eye on the cyclical dynamics, it's clear that this market rotation is steering away from tech names in favour of more traditional sectors. This could be indicative of the market seeking stability amidst high volatility levels. As we witness tides of change in market sentiment and strategy, it's crucial to adapt and refocus investment approaches accordingly. Keep watching this space as we break down more deceivingly complex fiscal phenomena into digestible insights! #economics #investmentstrategy #financialanalysis

With Nvidia pulling back, the rumblings have started: Is this the end of the A.I. and Technology trade? Probably not. What seems to be going on from my perspective is some natural (and healthy) rebalancing away from recent “winners” and into relative “losers”. For example, Chart #1 shows YTD performance of three sector ETFs, Technology ($XLK), Healthcare ($XLV) and Consumer Discretionary ($XLY), through 6/14/2024. If you haven’t heard, Tech has been an outstanding performer this year and has left other sectors like Healthcare and Consumer Discretionary in the dust. Well, Chart #2 shows the same sector ETFs and their performance last week - 6/17 through 6/24. It’s quite the opposite picture. As we approach quarter-end, it appears like investors are selling winners and rotating into sectors that haven’t been as strong. Since 2024’s stock market is being labeled as a market of “haves” and “have-nots”, this action isn’t too surprising. It’s only natural for the market to somewhat rebalance when the winners have outperformed by so much. In fact, I’d argue it’s healthy. For weeks investors have been concerned about how concentrated the market was in a handful of names, and last week’s market movements hopefully started to alleviate some of these concerns. But leave it to the mainstream financial media to turn the narrative into something that sounds a bit scarier like: The A.I. and Technology trade might be breaking… No one has a crystal ball, and no one knows if this action will persist into the 2nd half of the year. Right now, it’s too early to tell if a significant shift is happening or if this is just standard market behavior around a quarter-end. (Personally, I think it’s the latter, but will be keeping a watchful eye on the data going forward.) Regardless of what happens in the future, don’t let your investment strategy and asset allocation be determined by headlines. In my experience, successful investors are unemotional decision makers. They tend to have well-crafted financial plans that use data to keep their emotions out of the equation, and their long-term strategy in place.

🚀 EQAI Morning Briefing for September 10th! | EquityAI | app.eqai.app 📈 Jim Cramer’s Top Picks: After Monday’s market rebound, Jim Cramer highlights $MU, $AMD, and $ARM as chip stocks worth watching. Meanwhile, value stocks are leading this quarter, and $META gets a new ‘buy’ call for its strong position in future tech platforms. ✈️ Southwest Airlines ($LUV) Chairman Gary Kelly is set to retire amid pressure from Elliott Investment Management, signaling a shift in leadership as the airline navigates operational changes. 💼 Bank of America raises its minimum wage to $24 per hour, with a goal of $25 by 2025—a significant jump from $15 in 2018, reflecting the ongoing efforts to support employees in a challenging economic environment. 🍏 Apple’s iPhone 16 Event: Mixed reviews from investors as new iPhone prices remain steady, but fresh Apple Watch and AirPods announcements could boost the wearables market. 🛢️ Oil Prices face renewed pressure due to weak data from China, while U.S. crude bounces back amid potential hurricane threats and optimistic OPEC+ production forecasts from Goldman Sachs. 🏠 Housing Market Sentiment: A Fannie Mae survey shows a record share of Americans expect mortgage rates to fall in the next year, though overall consumer sentiment remains pessimistic about the housing market. 🚀 SpaceX’s Polaris Dawn Launch: Set for today, but weather conditions may pose a challenge. This mission marks another milestone in space exploration. 📊 Bankruptcy Filings Surge: U.S. bankruptcy filings hit their highest level since 2020 in August, highlighting ongoing economic uncertainties. Stay informed with EQAI! Explore more insights and updates at app.eqai.app 🌐 #Finance #Investing #Economy #Tech #MarketInsights #Leadership #MorningBriefing #Nvidia #apple #iphone #News #StockMarket #Space #SpaceX

NVIDIA Stock Correction: Rally Stalled, Opportunity Awaits! 🔍💪💼 Summary: While NVIDIA stock has recently experienced a correction and its rally appears to have stalled, the world of artificial intelligence (AI) offers other opportunities worth exploring. Two underappreciated and underperforming AI stocks that could potentially yield impressive returns are Tesla and Apple. 📈🚀 Heading & Subheadings: 1. Tesla and Apple: Undervalued AI Stocks with Exceptional Potential 👀💼 - Discover hidden potential in these tech giants. 2. Nvidia Stock Correction: Assessing the Situation 💥💯 - Understand the recent correction and its impact on the market. 3. AI-Powered Investments: Expanding Your HSA Portfolio 💡📊 - Investigate promising AI-related stocks for your HSA account. 4. Tesla: Innovating Beyond Electric Cars 🚗⚡ - Explore Tesla's advancements in AI technology and potential market domination. 5. Apple: The AI Contender on the Rise 🍏💫 - Uncover Apple's progress in AI and its impact on the company's future growth. In Summary: Although NVIDIA's stock may be in a temporary slump, don't let it discourage you from exploring other AI investment opportunities. Tesla's groundbreaking innovations beyond electric cars, coupled with Apple's rising prowess in AI, make them excellent choices for boosting your HSA investments. With the potential for significant returns, now is the time to take action and ensure that you're not missing out on these remarkable investment prospects. Don't let fear hold you back – seize the moment and invest wisely! 💪💰✨ #hsa #investing #healthcare #health #family #wellness #opportunity #investment #AI #stocks

Super Micro's Rally: A Promising Indicator of AI Demand Summary: 🚀📈 Super Micro stock has experienced an impressive rally recently, and with Nvidia's outstanding earnings report, it appears that the upward trajectory will continue. The strong demand for artificial intelligence (AI) solutions presents a compelling opportunity for investors, particularly those looking to grow their HSA accounts. #hsa #investing #healthcare #health #family #wellness Heading 1: Super Micro Stock's Impressive Rally Heading 2: Nvidia's Blockbuster Earnings Report Fuels Optimism Heading 3: Strong AI Demand Signals Promising Future Heading 4: Investing in Super Micro: An Opportunity to Grow Your HSA Account Heading 5: Overcoming the Fear of Missing Out: Take Action Now! Subheading 1: Strong Performance Ignites Excitement Subheading 2: Nvidia's Remarkable Earnings Report Boosts Confidence Subheading 3: AI Solutions: Driving the Next Wave of Innovation Subheading 4: Leveraging HSA Accounts for Investment Growth Subheading 5: Don't Miss Out on the Potential Upside! Summary: Super Micro's recent rally paints an optimistic picture for investors eyeing the AI sector. With Nvidia's spectacular earnings report, featuring robust demand for AI-related technologies, the stage is set for Super Micro to continue its upward trajectory. This presents an incredible opportunity for individuals seeking to grow their HSA accounts, utilizing the potential of the healthcare and wellness industry. Taking action now can help you avoid the Fear of Missing Out (#FOMO). Invest in Super Micro, capitalize on the AI boom, and pave the way for sustainable growth. Secure your financial future while contributing to the advancement of healthcare technology. Don't wait; act today and watch your HSA account flourish! 💪✨

2024 is eerily similar to 2023... Is a dip next ? or a rally with a Fed cut on the horizon? I'm expecting a 50 bps cut on Wednesday. S&P 500 (YTD): +17.95% I don't anticipate a recession taking hold within the next 6 months. A Fed rate cut ✂️ would boost sentiment, and the US economy is showing no signs of recession. While the uninversion of the yield curve is often seen as a worrying indicator, the effects of COVID and the policy responses have disrupted all historical models. So, be cautious about relying too heavily on past patterns and models. --------------- “We’re at the beginning of a new industrial revolution,” Nvidia, $NVDA, CEO Jensen Huang. NVDA bears will not like to hear it but the tech spending on AI is the 4th Industrial Revolution. “I would describe the dinner as me [Larry Elison] and Elon [Musk] begging Jensen [Huang] for GPUs. Please take our money. No, no take more of it. We need you to take more of our money please.” - Larry Ellison, Oracle co-founder #AI #NVDA #FederealReserve #Powell #RateCuts #JensenHuang #ElonMusk #LarryElison #GPUs ** Not an Investment Advice. Please do your research **

Interesting post on post-covid megacap flows from William Peters on Linkedin: This year the S&P500 has once again grown at double digits - led primarily by AI names like NVIDIA. One trend which is actually unusual is the obsession with megacap stocks. The chart below compares fund flows into large, mid and small cap stocks - we can see that since COVID mid and small cap stocks have seen little change in fund flows, but large cap stocks have exploded compared to pre-covid. I can think of a couple of reasons for this - growth of retail investing via apps like Robin Hood, which naturally lends itself to Large Cap, increase in market cap weighted passive funds and also the momentum play.