The Q - Daily Edition
The Trillion Dollar Club
"A billion here, a billion there, and pretty soon you're talking about real money.”
— attributed to Everett Dirksen
The very exclusive club of One-Trillion-Dollar-Market-Cap companies has just become a little tiny weeny less exclusive as it added a few more members this week:
And here’s the Market Cap chart of those 15 select club members:
Maybe it’s time for some Magnificent 7-style name giving for that club. My suggestion: The 4CC, which stands for The Four Comma Club. What’s your view on that nomenclature? Vote here:
The club is currently clearly dominated by semiconductor companies, which as we know, are devilishly cyclical, so the constituents may change over time. Having said that, the AI build-out phase is in full swing and price movements of involved companies are producing me flashbacks to the hay-days of the Dotcom bubble. The question is of course: are we 1996 or 1999? If we overlay the Dotcom bubble with the Roaring Twenties theory (which says that we are re-living the Roaring Twenties from a century ago) we are probably closer to 96 … fingers crossed.
To yesterday’s (equity) session, we saw tech stocks, as fore-mentioned, very bid with the Nasdaq 100 closing up over 1%, whilst the S&P 500 rose a more muted but still respectable 0.6%. Breadth was not great, with about the same number of stocks rising and falling in the S&P 500, leaving us with a very fragmented market heat map:
The Philadelphia Semiconductor Index (SOX) feels extended, to put it mildly, but I ain’t standing in front of that steamroller!
Bond yields have continued to soften, as much in the US,
as also in Europe:
Now that we have that 4CC club growing, we can either shake our fist at the cloud, or, embrace it as true “hail Mary” to save us from purchasing power deterioration destruction. Please refer to the COTD below …
Over the last 30 years, the purchasing power of the US Consumer Dollar has been cut in half due to inflation. At the same time, the S&P 500 has gained 828% (7.7% per year) AFTER adjusting for inflation. Why you need to invest for the long run, in one chart…
A pretty light agenda today across all themes - economic data, earnings, central bank speak, etc.
Hence, the burden to entertain us lies on President Trump and his social network posts. Fingers crossed he saves us from boredom.
May the Trend be with You!
Everything in this document is for educational purposes only (FEPO)
Nothing in this document should be considered investment advice
Investing real money can be costly; don’t do stupid shit
Leave politics at the door—markets don’t care.
Past performance is hopefully no indication of future performance
The views expressed in this document may differ from the views published by NPB Neue Privat Bank AG