Good morning and I hope you all had a great weekend. There is an incredible “fear of missing out” (FOMO) going through investor’s minds recently, but it is important to note that outside of a few mega-cap stocks investors aren’t missing out on very much since the Fed announced their $2T stimulus package on April 9th. While the S&P 500 (SPX) is up 1.68% since then, the Equal Weighted SPX Index that treats every company the same is actually down 0.89% over the same period. The same is true for the leading sector – Consumer Discretionary. The S&P 500 Consumer Discretionary Sector is the top performing sector up 7.62% since 04/09, largely because Amazon’s huge weight in the sector. The Equal Weighted S&P 500 Consumer Discretionary Sector Index is actually DOWN during the same time. The market is consolidating the historic “relief rally” and this week brings 1/3rd of SPX reporting EPS, more economic data to digest, and monetary policy meetings for the U.S., Europe, and Japan. Buckle up.
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