FTDS - CDT Insider Sentiment June 2024: Keep Your Seatbelt Fastened

2024-07-03 22:30:00 ET

Summary

• Closing out the first half of 2024, the S&P 500 Total Return Index (which includes dividend reinvestment) is up an incredible +15.3%.
• According to Apollo asset management, Nvidia accounted for a record-breaking 34.5% of the total return in the S&P 500 as of the middle of June.
• Today, according to our estimate of normal earnings growth, the market trades 1 standard deviation away from its average P/E and is getting more expensive by the day.

First Half Update

Closing out the first half of 2024, the S&P 500 Total Return Index (which includes dividend reinvestment) is up an incredible +15.3%. For context, since 1988, the average yearly return is +11.75% and the compound annual return is +10.75%, clearly the index is having a stellar six-month performance.

Behind the scenes, AI isn’t directing the show, it is the show. To underscore just how pervasive the AI movement is in the market today, let’s start our commentary by zeroing in on Nvidia ( NVDA ), the AI poster child and market darling of the moment....

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