The 493 ‘other’ stocks in the S&P 500 gained +3.7% during the first half of 2023, a gain that if predicted six months ago, would have seemed reasonable given the mix of macro variables at the start of January. Instead, the S&P 500 (SPX) generated a total return of +16.9%, fuelled by the 70% expansion in the P:E multiple accorded those other ‘7 macro cap tech’ stocks, with the first US$2T market company, Apple Inc., accounting for ~20% of the total gain in the index. Pundits attribute much of the recent five-week ramp in equities to investors’ thirst to be invested when the Fed is done hiking rates and the excitement radiating from artificial intelligence (“AI”).
Alternative asset manager offering investment solutions that find a balance between asset protection and capital enhancement.
Alternative asset manager offering investment solutions that find a balance between asset protection and capital enhancement.