1.September Rotation Out of Winners Into Losers

Sep 25, 2017

The S&P 500 is currently up more than 1% during the month of September, and if it can simply finish the month in the green, it will be considered a big win given that September has historically been the worst month of the year for stocks.

What’s interesting about the market’s performance this month is the underlying stocks that are driving major indices higher.  We broke the S&P 500 into deciles (10 groups of 50 stocks each) based on year-to-date performance through August to see how the year’s biggest winners and losers heading into September are doing this month.

As shown below, it’s 2017’s biggest losers that have posted the biggest gains in September, while the year’s biggest winners have taken a breather.  The 50 S&P 500 stocks that were performing the worst on a YTD basis through August are up 4.6% in September, while the 50 best-performing stocks YTD through August are up just 0.14%.

These stats show that momentum traders are likely under-performing in September.  If you stuck your neck out and bought the most beaten down names, you’re likely having a banner month.

https://www.bespokepremium.com/think-big-blog/

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1.Norway Sovereign Wealth Fund Hits $1 Trillion….A Little Larger Than New Mexico.

From
www.abnormalreturns.com

Map of Norway in relation to the United States

When I posted the map of Norway a few days ago, Annie made a comment saying that she didn’t really know the scale of the country and that it was interesting to compare it with its neighbors. When reading that, my very technologically advanced boyfriend said he could make a graphic superimposing Norway atop a map of the US, to see the size in comparison. And here it is! As you can see, it is a long and narrow country, almost as long as the US East Coast. On the West Coast, it would cover the distance from San Diego to Seattle. Enjoy:

Graphic: JY

A few facts:

• Norway has 4.7 million inhabitants
• The country is slightly larger than the US state New Mexico
• It borders Sweden, Finland, and Russia
• The four biggest cities are Oslo (the capital), Bergen, Stavanger and Trondheim. They are the only cities with more than 100,000 people.
• Oslo has 573,388 inhabitants

http://www.slowtrav.com/blog/chiocciola/2009/02/map_of_norway_in_relation_to_t.html

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1.Global Private Equity Sitting on $1.5 Trillion in Cash…Up 50% Since 2012

Preqin noted in its 2017 annual report that 48% of institutional investors plan to increase allocations to private equity.

http://www.barrons.com/articles/big-ipo-gain-dont-bet-on-it-1505529036

https://www.bloomberg.com/news/articles/2017-08-08/why-private-equity-is-betting-on-your-online-shopping-addiction

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1.Start with Another Gundlach Chart…Equities vs. Commodities.

www.businessinsider.com

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1. Longest Rally Since…

Sep 11, 2017

Back in late July we published a Chart of the Day looking at the current rally and how it ranks in terms of length without a significant pullback of any kind.  With the S&P 500 closing at a new all-time high today, it has now been 3,108 calendar days since the last 20% decline (the standard bull/bear market distinction).  As shown in the table below of the longest bull markets on record, the current bull is the second longest behind the 4,494 days that passed between December 1987 and March 2000 without a 20%+ pullback.

Today’s close was also a big deal in terms of gains for the current bull market.  As shown, the S&P’s gain of 267.61% makes this the second strongest bull market on record as well.

It has also been a long time since the S&P 500 had a 10% correction.  As shown, the current streak of 578 days since the last 10%+ correction is the 11th longest on record going back to 1928.

Not only have we not had a 10% correction in more than 18 months, but we also haven’t even had a 5%+ correction since last June.  The 441-day streak without a 5%+ correction is the sixth longest on record for the S&P 500.

And finally, it has now been 311 days since the S&P 500 last experienced just a 3% pullback.  As shown below, this is the 2nd longest streak of all-time without a 3%+ pullback.

To break this record, we’ll need to go another 59 days without declining 3% from today’s close.

Pay just $1 to access any of Bespoke’s premium membership levels for the next month!

https://www.bespokepremium.com/think-big-blog/

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