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Printed: 13 July 2024 1:29 AM

News

26 Jun 2024 - 10k Words | June 2024

By: Equitable Investors

10k Words

Equitable Investors

June 2024


We have semiconductors snatching the sector title in equities as penny stock activity also rise in the US (not so much in Australia; and no mention of GameStop here, sorry). B2B SaaS growth moderates - as have tech EV/Revenue multiples - and strategists are now looking at strong US corporate earnings growth - will it drive capex or will it fall short itself as demand cools? The Atlanta Fed's GDP indicator has certainly dropped in recent days. Over in the US bond market, we are witnessing possibly the longest ever drawdown. Meanwhile, the Federal Reserve last held rates steady for over a year in the lead-up to the global financial crisis. Finally, we take a look at Starlink satellite customer numbers scaling up and the varying productivity chasm between small and large enterprises across nations.

Semiconductors emerge with the heaviest weighting in the S&P 500

Source: FactSet (via @jessefelder)

Share of US equities volume accounted for by "penny" stocks (trading at <$US1 a share)

Source: Financial Times

 

Estimate of ex-S&P/ASX 300 volume relative to total ASX volume

Source: Equitable Investors, Iress

Net new sales for all "B2B" SaaS companies on ProfitWell Metrics since Jan 1, 2022 (seven-day growth rates, seasonally adjusted)

Source: ProfitWell

 

Technology sector EV/NTM (next 12 months) revenue multiples

Source: Mostly metrics

Strong S&P 500 earnings growth as lead indicator for capex spending 

Source: Apollo Chief Economist (BEA, S&P. Haver Analytics)

 

Evolution of Atlanta FedNow GDPNow real GDP estimate for 2024 Q2

Source: Atlanta Fed

US Bond Market in a drawdown for 46 months

Source: Creative Planning, @CharlieBilello

One precedent for the Federal Reserve undertaking a long hold

Source: Bloomberg

Starlink customer ramp-up 

Source: ARK

Productivity of "Micro-, small, and medium-size" enterprises relative to larger firms by country

Source: McKinsey

June 2024 Edition


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