Daily Charts- Large cap equity valuation is way higher than it was in 2016
1.For those who make bullish comparisons with President Trump's 2016 victory, there is one key difference.
Large cap equity valuation is way higher than it was in 2016 and bond yields were around 2%. Maybe small caps are the best Trump-trade this time around.
$.SPX(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$ $NASDAQ 100(NDX)$ $ProShares UltraPro QQQ(TQQQ)$ $.DJI(.DJI)$ $GLOBAL X DOW 30® COVERED CALL ETF(DJIA)$
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2.Today's stock indexes feature elaborate sector/industry breakdowns to group and classify stocks... and ultimately determine flows, coverage, regulations, etc
But while there are now 11 top-level GICS Sectors, back in 1957 there were just 3
Says as much about the development of the economy and stockmarket as it does about index methodologies!
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3.Across the world Central Banks are rushing into rate cuts -- this type of behavior is rarely seen outside of recessions/crises
Bullish? Bearish?
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