Tuesday, August 4, 2020

Morning Note: Wow! Those Top 5!!

Asian equities were nicely green nearly (with only China's Shenzhen Index closing lower) across the board overnight. Europe's mixed this morning, with 9 of the 19 bourses we track currently in the red. U.S. major averages are on the rise (although barely for the Nasdaq): Dow up 128 points (.48%), S&P 500 up .21%, Nasdaq up 0.02% and the Russell 2000 up .43%.

The VIX (SP500 volatility) is off 1.03% to 24.03, while VXN (Nasdaq vol) is down 1.29% to 29.18.

Oil's up 1.41%, gold's up $19, silver's up 3.9%, copper's up a huge 4.65% and ag's tinted red this morning.

The 10-year treasury is trading notably higher (yield lower), while the dollar's flat.

Our core portfolio, with silver, energy, utilities, materials (equities) and Verizon leading the way, is having a very nice morning thus far (relative to the major averages), up .61%.

The tech sector continues to be the huge winner in 2020, so much so that it is the dominant (in record proportion) reason the S&P 500 finds itself now positive by 2% on the year. 

To really appreciate the impact of what is now the highest concentration in the largest 5 members of the S&P 500, here's Bespoke Investment Group illustrating the impact they've had on the performance of the index this year vs the other 495:

That's astounding, and, by the way, is representative of anything but a healthy market...

Have a great day!

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