This week it's a look at the Honorable Mentions — charts that may have also been useful, helpful, and interesting, but didn’t quite make it into those other sections… but really an excuse to dive into another set of charts! Charts! :-)
1. Capex Boom
This was (and is) a major macro development; partly fiscal-driven of course, but a huge breakout in capex across a number of key categories.
2. BOJ Rates Liftoff
Another interesting breakout was that of the BOJ leaving behind NIRP (and thoroughly rattling markets in the process, with Japanese stocks undergoing a relatively brief 25% *crash*). It also stood in contrast to most other banks cutting rates.
3. VIX Seasonality $Cboe Volatility Index(VIX)$
That also showed up in the VIX (the big spike in Aug), which coincided with a seasonal uptick in volatility through until the election.
4. Sector Skews
This one speaks for itself – tech and tech-related sectors reaching new highs, while defensive sectors reached new lows in market cap weightings. Passive index investors take note: this is your portfolio now…! $.SPX(.SPX)$ $.IXIC(.IXIC)$ $.DJI(.DJI)$
5. Small vs Large
Another crowd-pleaser, this one showed what appears to be the nadir in small vs large cap performance, and the large valuation discount is still very much significant and attractive.
6. Cyclically-Adjusted Earnings
This one tells you all you need to know about US vs global equity relative performance (and likely will hold key clues in terms of the next steps from here – when/if stagnation is shaken in global ex-US earnings).
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