QuiCQ 04/07/2024
Independence Day
Prefer to read today’s QuiCQ in PDF format? No prob, download it here!
BETA
—- New! Your favourite Newsletter writer on Video (though it seems to be truncated at the end).
"All past declines look line an opportunity, all future declines look like a risk."
-- Morgan Housel
An endless number of squids have been sacrificed in order to produce all the ink that then was spilt on how narrow the rally in stocks this year has been. And indeed, the S&P 500 cap-weighted index was up 14.5% in the first half of the year, whilst the equal-weight version of the same index was up less than four percent. Surely, this relative outperformance cannot go on forever! Or can it? As usual, we recommend taking a step back and look at the bigger picture. When drawing a ratio chart between the two indices (SPX/SPW) over the past 30 years or so, we suddenly get a very different perspective. Why should this outperformance of a few large cap stocks not continue into year end or even, years on end as it happened towards the end of the last millennia? Stay tuned …
