..

1. More Earnings Stats

Beat rate. "The proportion of US companies beating earnings expectations this quarter is the highest in more than four years ... About 85% of S&P 500 firms to have reported third-quarter earnings so far have surpassed profit estimates, on course for the best performance since 2021."

..

2. Companies Beating Earnings are Underperforming

..

3. Sector Performance Since Highs on 10/8

…

4. Capex is Flat Outside of AI Build Out

..

5. Single Stock Leverage ETFs Trailing Stocks

WSJ Jack Pitcher  The brutal divergence in performance is caused by what traders call “volatility decay,” or the tendency of price fluctuations to erode the long-term returns of a leveraged fund, even if the underlying asset goes up. And it is why leveraged-fund managers are quick to warn that their funds shouldn’t be held for long periods.

“Everything that is problematic about these funds is more problematic the more leverage or volatility you add to them,” said Dave Nadig, an industry veteran and director of research at ETF.com. 

Money managers say that most leveraged funds aim to amplify returns for a single day, and shouldn’t be held for longer periods.

One of the most popular funds provides an extreme example. Last November, two recently launched ETFs that offered to double the daily returns of bitcoin-linked stock MicroStrategy (now known as Strategy), began to soar. The outsize gains attracted attention on social media, and thrill-seeking individual investors began to pile in at a pace never seen before for a leveraged single-stock fund. 

Many of those investors are now sitting on huge losses, despite the fact that the underlying Strategy shares are up over the past year. Strategy shares rose 28% in the 12 months ended Wednesday, while one of the leveraged funds, the Defiance Daily Target 2x Long MSTR ETF, plunged 65%. 

.

6. Low Quality Small Cap Rallying But See Long-Term

.

7. Dominant Active and Passive Managers…Vanguard and Blackrock 66% of Passive Combined

.

8. Mortgage Rates Closing in on 6%

..

9. Debt to GDP Europe

.

10. As Stated in My Quarterly Letter.. The U.S. is a Now a Stock Market Nations….Half of Private Sector Employees in 401k

…

Did someone forward this email to you? Get your own:

Disclosure

Indices that may be included herein are unmanaged indices and one cannot directly invest in an index. Index returns do not reflect the impact of any management fees, transaction costs or expenses. The index information included herein is for illustrative purposes only.

Material for market review represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results.
Material compiled by Lansing Street Advisors is based on publicly available data at the time of compilation. Lansing Street Advisors makes no warranties or representation of any kind relating to the accuracy, completeness or timeliness of the data and shall not have liability for any damages of any kind relating to the use such data.

To the extent that content includes references to securities, those references do not constitute an offer or solicitation to buy, sell or hold such security as information is provided for educational purposes only. Articles should not be considered investment advice and the information contain within should not be relied upon in assessing whether or not to invest in any securities or asset classes mentioned. Articles have been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Securities discussed may not be suitable for all investors. Please keep in mind that a company’s past financial performance, including the performance of its share price, does not guarantee future results.

Lansing Street Advisors is a registered investment adviser with the State of Pennsylvania.