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Famous Bear Likes The Large-Caps
Large-cap US equities have achieved their independence from bond yields.
Not entirely, of course. Risk-free rates will always matter for equity valuations even if, from time to time, multiples ignore yields in favor of today's narrative du jour (AI or whatever else).
In 2024, US large-cap benchmarks have hit record after record. Small-caps, on the other hand, remain some 16% below the November 2021 "everything bubble" peaks.
On Monday, as the S&P hit yet another fresh all-time high, Morga
Does Mr. Wilson has MS’s hourse call? Can this turn out to be the contrarian indicator (when everyone is on the strong balance sheet side)? I still remember the painful to watch “read my lips” clip from the BOA, but it appears that her call for outperformance from equal weighted is on track towards 2030.
HA! I forgot about that “read my lips” equal-weighted call. It panned out ok in Q4, or at least during some weeks.
If you expect to enter a “yields down” environment, wouldn’t you want the group with the most negative stock price/yield correlation? I.e. small caps?