1. High Grade Bond Issuance Already Sets Record
Category Archives: Daily Top Ten
Topley’s Top 10 – August 17, 2020
1. Russell 1000 Value is a Short of Technology Sector.
The Big (Tech) Short
In the Great War, there are many battlefronts. Investors furiously debate the role of low interest rates, outdated accounting rules, and passive flows on value investing. Rather than get caught up in an academic discussion, let’s look at the companies you actually get when you buy a value portfolio. Exhibit 4 shows the sector composition of Russell 1000 Value and Growth.
Value investors are making an epic 34.7% short bet against the technology sector. Moreover, this bet is more than fully explained by their underweight to the FAANG+M companies. Value has a meager 1.4% position in FAANG+M compared to Growth’s 39.4%. Not only are value investors short tech, but they are short Big Tech. And in a big way.
Exhibit 4
Russell 1000 Value vs. Growth Exposures
Topley’s Top 10 – August 14, 2020
1. Will the Huge Spike in U.S. Savings Rate Lead to Pent Up Demand?
The Daily Shot https://blogs.wsj.com/dailyshot/2020/07/31/the-daily-shot-online-job-seeking-activity-slows/
Continue readingTopley’s Top 10 – August 13, 2020
1.U.S. 10 Year Break Even Inflation Numbers Triple Off Covid Low .50 to 1.63%
US Inflation expectations (10-yr breakeven) rise to their highest level since February 20: 1.63%.
Topley’s Top 10 – August 12, 2020
1. 88% of Apple’s Trillion Valuation Has Been Generated Since Tim Cook Took Charge.
Tim Cook: The Apple CEO has built a cordial relationship with President Trump, despite a number of touchy issues, mostly involving Apple’s presence in China. Since Cook succeeded Steve Jobs as CEO in August 2011, Apple shares have rallied 750%. In other words, about 88% of Apple’s valuation has been generated with Cook in charge.
