A rare moment in history for car owners
1: If you own a Honda Civic (or pretty much any car), it has likely appreciated in value since the start of the pandemic. This was one of those rare periods in history during which cars weren’t a depreciating asset.
2: As a contrarian indicator, high household allocation to equities suggests 10yr forward stock market returns might disappoint. Household allocation is a contrarian indicator because individual investors tend to invest most after they see strong tangible returns - usually towards the end of a bull market.
Is this time different?
3: The breadth of stock performance within the NASDAQ Composite Index has plummeted throughout 2021. This shows that a shrinking number of stocks are driving the index to record highs. This is not a sign of a healthy market.
(I feel like I’ve posted this before, but don’t see the image in my files.)