This week it’s a slightly different focus than usual given the quieter time-of-year — this edition takes a look at some of the most notable and enduring charts from the past year.This one made the list because the trend (and cycle around the trend) is very interesting — but perhaps more poignant is the fact that for the first time in history the US Stock market capitalization to GDP ratio broke through the 200% mark.
A reflection of the time we live in with regards to US leadership in global markets, but also the stage we are at in the market cycle.Another market-cap milestone was set this year — the US stock market cap weighting in developed market equities reached a new high. Again this is interesting because of how it reflects US dominance, but also the subtle nod to future risks vs opportunities, its rare to see trends like this go on forever, and when they become extended like this it’s more common to see an eventual reversal.Staying with market cap stats, I find this one fascinating even if obvious. It really spells out the stark difference between the. The “wow” stat is the largest 10 stocks in the cap-weighted carry a weighting almost 20x (38% vs 2% at the time of writing) that of their equivalent standing in the equal-weighted index. It makes you think — is index investing really diversification when it gets like this? And, what are the hidden risks/benefits of the index that you are investing in? (have you even thought about this?)This year saw the beginning of the 3rd year of the cyclical bull market that began from the low in October 2022. And as it seems, the 3rd year can be frustrating. The bright side is that if we make it through to October 2025 without the bull market ending, then there could be some good further years to follow. The downside however is obvious., it’s “only” just keeping pace with stocks for now (both are sitting around 26% YTD as I write). And the gold vs stocks relative performance ratio has yet to turn the corne
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