Nvidia is approaching a $2 trilling market cap after reporting strong earnings on Wednesday, sending the semiconductor sector to a new high. Investors are geared up for the bull market to continue. The technology sector’s continued dominance has skewed U.S. market indices towards extreme levels of concentration. The AI boom is contributing to a surge in U.S. manufacturing investment. The stock market may not always reflect the economy in the short term, but it does in the long term. Global earnings growth expectations are on the upswing. India is taking its place as the new emerging market growth champion. Natural Gas. King Dollar.
1. Nvidia’s earnings have become somewhat of a spectacle, drawing comparisons to Cisco in the late 90’s:
Source: The Daily Shot 2/22/2024
2. The GS Risk Appetite Index reached its highest level since 2021:
Source: The Daily Shot 2/22/2024
3. The technology sector is the only one of the eleven GICS sectors that has beaten the S&P 500 over the past 10-years:
Source: Koyfin from 2/22/2014 to 2/22/2024
4. Passive investments in U.S. market capitalization weighted equities offer a historically low level of diversification:
5. Increased manufacturing investment is contributing to economic growth:
6. Economic growth has a strong historical relationship with earnings growth:
7. Historically, small-cap stocks have outperformed in periods of strong economic growth:
8. In recent years, the U.S. has driven most of earnings growth, but now other regions are starting to contribute:
9. The outlook for India’s long term growth is positive, while the Chinese economy is expected to continue to slow:
10. Natural gas prices have risen from their recent low as companies begin to curtail production:
Source: The Daily Shot 2/21/2024
11. The Dollar has put together a nice winning streak to start the year:
Source: The Daily Shot 2/19/2024