Stocks, led by the S&P 500 and Nasdaq 100, have surged on renewed institutional risk appetite, with high-beta names outperforming. My proprietary 'Smells Funny Index' signals economic weakness is bottoming, as durable goods and capex show marked improvement. Despite improved fundamentals, equity valuations—especially high-beta stocks—appear to have already priced in much of the economic turn. Current rally is sector-agnostic, driven more by risk appetite than specific tech or cyclical sector strength.
Following a Q2 that marked the best quarterly performance in the S&P 500 (SPY) since 2020, stocks keep marching higher and higher. The broad market index, up about 22% over the past year, has already climbed 6% since only
How does the 'Smells Funny Index' currently inform equity positioning?
The index suggests economic weakness is bottoming, supporting a risk-on stance, but caution is warranted as equities may have already priced in much of the improvement.
What signals indicate the rally is not purely tech- or cyclical-driven?
Nasdaq 100’s performance in line with the S&P 500 and underperformance of industrials and financials indicate the rally is sector-agnostic, reflecting broad risk appetite.
Are high-beta stocks still attractive after recent performance?
High-beta stocks have led the rally and may be fully valued, as evidenced by the sharp drawdown in long-low beta/short-high beta strategies, suggesting limited further upside.
About SPY ETF
| Symbol | Last Price | % Chg |
|---|---|---|
| SPY State Street SPDR S&P 500 ETF Trust | 773.26 | 0.61% |
| Post | 773.40 | 0.02% |
Expense Ratio0.09% Div FrequencyQuarterly Div Rate$7.52 Yield0.97% Fund AUM$808.30B Class AUM$795.00B Compare to Peers
More on SPY
Related Stocks
| Symbol | Last Price | % Chg |
|---|---|---|
| QQQ QQQ | 723.03 | 1.17% |
| Post: | 723.26 | 0.03% |
| SPY SPY | 773.26 | 0.61% |
| Post: | 773.40 | 0.02% |
| DIA DIA | 539.62 | 0.27% |
| Post: | 540.40 | 0.14% |
| IVV IVV | 776.73 | 0.60% |
| Post: | 776.98 | 0.03% |
| IWM IWM | 301.56 | 1.11% |
| Post: | 301.93 | 0.12% |
| VOO VOO | 710.71 | 0.61% |
| Post: | 710.80 | 0.01% |
| SP500 SP500 | 7,757.50 | 0.62% |
| NDX NDX | 29,722.30 | 1.19% |
| DJI DJI | 54,036.52 | 0.28% |
| RTY RTY | 3,034.49 | 1.10% |
| SPX SPX | 7,757.64 | 0.62% |
