1: The S&P 500 is highly concentrated, with the top 5 stocks representing a proportion not seen since the 1970s. A small handful of stocks are driving index performance.
2: Investors are very overweight developed market stocks and underweight bonds. While the rationale is clear - bond yields are very low - some might view this as a contrarian indicator.
3: Since 1979, worker productivity and compensation have grown by 73% and 13% respectively. Who’s benefiting from the productivity gains then? Shareholders and CEOs, for the most part. One could also argue that the consumer has benefited, assuming some productivity gains were passed on in the form of lower prices and a larger selection of goods.
4: It appears that global shipping costs are coming down. The Baltic Dry Index is down about 50% from its recent peak.