The Economy No Longer Stinks - But Stocks Have Already Sprinted Ahead (NYSEARCA:SPY) | Seeking Alpha
HomeMarket OutlookToday's MarketSummaryStocks, led by the S&P 500 and Nasdaq 100, have surged on renewed institutional risk appetite, with high-beta names outperforming. My proprietary 'Smells Funny Index'. . .
HomeMarket OutlookToday's MarketSummaryStocks, led by the S&P 500 and Nasdaq 100, have surged on renewed institutional risk appetite, with high-beta names outperforming. My proprietary 'Smells Funny Index' signals economic weakness is bottoming, as durable goods and capex show marked improvement. Despite improved fundamentals, equity valuations—especially high-beta stocks—appear to have already priced in much of the economic turn. Current rally is sector-agnostic, driven more by risk appetite than specific tech or cyclical sector strength. Vladislav Novitskiy/iStock via Getty ImagesFollowing a Q2 that marked the best quarterly performance in the S&P 500 (SPY) since 2020, stocks keep marching higher and higher. The broad market index, up about 22% over the past year, has already climbed 6% since only21. 39K FollowersAnalyst’s Disclosure:I/we have a beneficial long position in the shares of SPY, BTAL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure:Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.