DC Lite #189

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1. Jackson Hole. Powell “didn't utter any hawkish views whatsoever to alter the market's dovish expectations for several rate cuts ... So the only ambiguity about coming rate cuts is how many and how much.”

2. Fiscal dominance. "The US is now potentially transitioning ... to a regime where the Fed (presumably) returns to a neutral policy, while the fiscal expansion continues. It could bring us closer to a regime of pure fiscal dominance. That suggests a weaker dollar, and higher gold prices (and other real assets)."

3. Buybacks (I). With S&P 500 corporate cash at just 8.8% of assets, corporate buybacks are likely to peak soon.

4. Institutions vs. mega-cap Tech. "Of the large cap stocks we evaluate, MSFT, NVDA, AAPL, AMZN, and GOOGL are currently the most under owned in actively managed portfolios vs. the S&P 500, while INTU, CRM, ADBE and QCOM are the most over-owned."

5. S&P 500 breadth. Breadth is back.