Equities: The S&P 500 is becoming increasingly concentrated. The market capitalization share of the top five companies is at multi-decade highs. At the same time, these top firms’ percentage of net income is lagging the gains in market value.
Share buyback activity, which bolstered performance over the past couple of years, has been fading.
Alternatives: Here is the relative growth in private vs. public equity markets this century.
Additionally, we have the relative performance of global pre-IPO (privately held) shares trading in the secondary market. The second chart provides a comparison with the corresponding public markets.
Energy: Asian energy importers are most exposed to potential shipping disruptions in the Strait of Hormuz (two charts).
China: Exports surprised to the upside.
Imports were robust as well.
Here is China’s trade balance.
Global Developments: Here is a forecast for this year’s GDP growth in advanced economies (from Oxford Economics).
Food for Thought: Proposed spending announced by Democratic presidential campaigns:
Edited by Devon Lall
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