TME Saturday: Disco 2000

We could be sister and brother

We are actually front running the 1999 trajectory. Nasdaq now vs 1999.

Source: Refinitiv

Disco 2000

Market breadth has narrowed by the most since the Tech Bubble.

Source: Goldman

Lets all meet up in the year 2000

The Tech sector is once again beating everything, up over 33% so far this year. Its relative strength versus the broad market has now fully recovered from the 2021-2022 drawdown, surging to its highest level since August 2000.

Source: Bilello

Cause you were so popular

Extreme concentration. The most popular have never been this popular...

Source: BofA

Oh, yeah

The top 5 SPX stocks have contributed to more return than any other year in the past 2 decades.

Source: Barclays

It meant nothing to you

"Following 9 other episodes of sharply narrowing breadth since 1980, the S&P 500 typically traded sideways during subsequent months as rotations continued within the market. In addition to below-average returns, drawdowns have also been larger than average in these experiences. Eventually, however, a “catch up” has been most common, with S&P 500 valuations and prices increasing alongside a reversal of intra-market momentum".

Source: Goldman

Very small

Not expensive if...Excluding the 50 biggest stocks, the S&P 500 trades at just 15x, a full standard deviation below its historical average multiple (18x).

Source: BofA Quant

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