DC lite #64

Welcome back to DC Lite: Daily Chartbook’s free, entry-level newsletter containing 5 of the day’s best charts & insights.

As a reminder, today is the LAST DAY to lock in a 10% DISCOUNT FOR LIFE:

Offer ends at midnight (Eastern time); discount applies to annual plans only.

ICYMI: Monday’s premium newsletter is unlocked and can be viewed here.

ICYMI 2: The Consumer Snapshot published Monday was the first in a series of themed reports DC will be sending regularly to paid subscribers only moving forward.

1. Home prices vs. rates. "Lower interest rates would bring more buyers into a market already short inventory, thereby increasing home prices."

2. Bull & Bear. BofA's Bull & Bear Indicator jumped to 6.8 from 6.1 "driven primarily by strong inflows to risky EM assets."

3. Small-cap bull case. “Factors supportive of small cap outperformance in ‘24 include bottoming profits, historically attractive valuations (29% discount to large), improving market breadth, a Fed cutting cycle and inflecting macro indicators that are correlated with relative performance.”

4. SPX forward P/E. At 20.3, the S&P 500's forward P/E ratio has risen above 20 for the first time in 2 years.

5. 2000 vs. 2024 (I). "Lots of talk about a bubble in AI/Mag 7...At this point, valuations at the top are no where near as frothy as they were at the height of the Dot Com Bubble. The 5 largest stocks traded at 43x Fwd PE in March ‘00, a 59% premium to the Mag 7’s current multiple of 27x."

See: