Shesa's Investment Blog

  Stock Market Update On Sunday, President Joe Biden and Republican House Speaker Kevin McCarthy  signed off on an agreement to temporarily suspend the  debt ceiling  and cap some federal spending in order to prevent a U.S. debt default. It’s expected to be voted in House and Senate this week. We will see how it goes. But this is a positive development and it should help calm the investors nerve.  As we know stock market has been roaring for last 3-4 weeks, particularly Nasdaq which has gone up 24% this year! We have to be thrilled if we are invested in the right stock, however things are not as rosy as it feels. The top 10 stocks of the S&P 500 have contributed almost all these gains and remaining 490 companies are almost flat. The market rally is mostly contended to two group of stocks: Those companies who are or expected to be working on Artificial Intelligence ( A.I ). Undoubtedly, A.I could transform increasing productivity but it has ...

U.S. Stock Market Commentary   Finally, the stock market got some breather last week with the hope that democrats and republicans will strike a deal for debt ceiling/limit. The S&P 500 and Nasdaq are multi-months high, Nasdaq up 21% this year. Nasdaq 100 has a remarkable comeback, up 33% from its October lows. However, the market momentum is restricted to a handful number of stocks. Mostly, a few large cap technology stocks who came with good earnings, other stocks still remain dismal. It can be noted that the top 10 S&P 500 stocks account for more than 95% of the gain this year, to name a few NVDA, META, Microsoft, Apple, Netflix, Google etc. Apple and Microsoft each company is now l arger than whole Russell 2000 index . In other words, the whole of small cap 2000 stocks value less than Apple or Microsoft. The Russel 2000 is trading about 40% discount comparing to S&P 500, historically it trades around 7% difference. This indicates that how narrow the market ...