Offshore
Photo
The Kobeissi Letter
Are hedge funds fading this rally?
Hedge fund exposure to Magnificent 7 stocks is down 8 percentage points, a LARGER drop than the 2022 bear market.
As a result, the Magnificent 7 has erased -$3 TRILLION in market cap.
What is institutional capital telling us?
(a thread) https://t.co/bFTVHyPgTV
tweet
Are hedge funds fading this rally?
Hedge fund exposure to Magnificent 7 stocks is down 8 percentage points, a LARGER drop than the 2022 bear market.
As a result, the Magnificent 7 has erased -$3 TRILLION in market cap.
What is institutional capital telling us?
(a thread) https://t.co/bFTVHyPgTV
tweet
Offshore
Photo
Finding Compounders
Warren Buffett explains why Berkshire doesn’t split its stock, in his 1983 letter.
He highlights the importance of attracting high quality shareholders. https://t.co/iUhNHT9bDq
tweet
Warren Buffett explains why Berkshire doesn’t split its stock, in his 1983 letter.
He highlights the importance of attracting high quality shareholders. https://t.co/iUhNHT9bDq
tweet
Offshore
Photo
The Kobeissi Letter
Foreign investors are selling US stocks:
Foreign investors withdrew ~$6 BILLION from US equities funds last week, the 3rd largest amount on record.
Only March 2020 and the March 2023 Banking Crisis saw bigger weekly outflows.
This coincides with ~$4 billion of inflows into European stocks over the last 4 weeks, the most in 10 years.
However, foreigners still own ~$16 TRILLION of US equities, near an all-time high.
This reflects ~23% of the total US stock market's value.
Sentiment continues to see rapid swings.
tweet
Foreign investors are selling US stocks:
Foreign investors withdrew ~$6 BILLION from US equities funds last week, the 3rd largest amount on record.
Only March 2020 and the March 2023 Banking Crisis saw bigger weekly outflows.
This coincides with ~$4 billion of inflows into European stocks over the last 4 weeks, the most in 10 years.
However, foreigners still own ~$16 TRILLION of US equities, near an all-time high.
This reflects ~23% of the total US stock market's value.
Sentiment continues to see rapid swings.
Are hedge funds fading this rally?
Hedge fund exposure to Magnificent 7 stocks is down 8 percentage points, a LARGER drop than the 2022 bear market.
As a result, the Magnificent 7 has erased -$3 TRILLION in market cap.
What is institutional capital telling us?
(a thread) https://t.co/bFTVHyPgTV tweet
Offshore
Photo
The Kobeissi Letter
BREAKING: The FBI has launched a Tesla, $TSLA, threats task force to “investigate activity and crack down on violent Tesla attacks.” https://t.co/OrBrTuWhFp
tweet
BREAKING: The FBI has launched a Tesla, $TSLA, threats task force to “investigate activity and crack down on violent Tesla attacks.” https://t.co/OrBrTuWhFp
tweet
Offshore
Photo
The Kobeissi Letter
BREAKING: The S&P 500 closes +95 points higher and has now added +$1.5 trillion of market cap since its low on Friday. https://t.co/B3PiSUshUm
tweet
BREAKING: The S&P 500 closes +95 points higher and has now added +$1.5 trillion of market cap since its low on Friday. https://t.co/B3PiSUshUm
Are hedge funds fading this rally?
Hedge fund exposure to Magnificent 7 stocks is down 8 percentage points, a LARGER drop than the 2022 bear market.
As a result, the Magnificent 7 has erased -$3 TRILLION in market cap.
What is institutional capital telling us?
(a thread) https://t.co/bFTVHyPgTV tweet
Offshore
Photo
The Kobeissi Letter
Market concentration remains HIGHLY concentrated:
The top 10 stocks now reflect 36% of the S&P 500's market cap, near an all-time high.
Moreover, the market cap of the largest US stock is ~700 TIMES larger than the 75th percentile stock, near the most since the Great Depression of the 1930s.
Both metrics currently exceed the 2000 Dot-Com Bubble levels.
Market concentration has eased slightly this year as the biggest stocks have underperformed.
In fact, S&P 500 equal-weighted index has closed higher than the Magnificent 7 in 10 of the last 12 trading weeks.
However, the market is still highly reliant on large cap tech.
The market needs a bottom in big tech.
tweet
Market concentration remains HIGHLY concentrated:
The top 10 stocks now reflect 36% of the S&P 500's market cap, near an all-time high.
Moreover, the market cap of the largest US stock is ~700 TIMES larger than the 75th percentile stock, near the most since the Great Depression of the 1930s.
Both metrics currently exceed the 2000 Dot-Com Bubble levels.
Market concentration has eased slightly this year as the biggest stocks have underperformed.
In fact, S&P 500 equal-weighted index has closed higher than the Magnificent 7 in 10 of the last 12 trading weeks.
However, the market is still highly reliant on large cap tech.
The market needs a bottom in big tech.
Are hedge funds fading this rally?
Hedge fund exposure to Magnificent 7 stocks is down 8 percentage points, a LARGER drop than the 2022 bear market.
As a result, the Magnificent 7 has erased -$3 TRILLION in market cap.
What is institutional capital telling us?
(a thread) https://t.co/bFTVHyPgTV tweet
Offshore
Photo
The Kobeissi Letter
Stagflation fears are back:
Mentions of “stagflation” in Bloomberg News spiked to ~1,500 over the last few weeks, the highest since May 2024.
Stagflation means persistent high inflation combined with slow economic growth and elevated unemployment.
This comes as inflation has accelerated and GDP growth estimates are falling.
Additionally, leading indicators have suggested that unemployment is set to rise this year.
Most recently, the Fed raised both their unemployment and inflation forecasts for 2025 while cutting GDP growth estimates.
Is stagflation officially here?
tweet
Stagflation fears are back:
Mentions of “stagflation” in Bloomberg News spiked to ~1,500 over the last few weeks, the highest since May 2024.
Stagflation means persistent high inflation combined with slow economic growth and elevated unemployment.
This comes as inflation has accelerated and GDP growth estimates are falling.
Additionally, leading indicators have suggested that unemployment is set to rise this year.
Most recently, the Fed raised both their unemployment and inflation forecasts for 2025 while cutting GDP growth estimates.
Is stagflation officially here?
tweet
Offshore
Photo
The Kobeissi Letter
BREAKING: President Trump’s Trump Media has signed an agreement with Crypto .com to launch a series of crypto-related ETFs. https://t.co/5OYSGoenmC
tweet
BREAKING: President Trump’s Trump Media has signed an agreement with Crypto .com to launch a series of crypto-related ETFs. https://t.co/5OYSGoenmC
tweet