The U.S. Market Is Becoming the World's Market

Market Cap Weights

-Mega Caps are bigger than usual

-Large Caps are at a record low

-SMID are smaller than usual

We've seen huge shifts in cap weights across size cohorts --majorly distorted market, big moves like this rarely last long and are often the sign of a boom/bubble ready for bust.

$S&P 500(.SPX)$ $iShares 20+ Year Treasury Bond ETF(TLT)$ $SPDR S&P 500 ETF Trust(SPY)$

Globalization of the US Stockmarket

...if you think about it, more and more offshore investors buying into US listed companies just as US listed companies are making more and more of their money from offshore. 🤔

Bond yields have been caught in a macro stalemate of resurgence risk vs recession risk.

This tight trading range has helped volatility relax back to the lows...

But remember: neither high nor low volatility lasts long in markets --and when treasury yields do finally break out of the range volatility will be back in size. 🧐 🤔

After all manner of twists and turns over the decades and centuries, US interest rates are sitting about right in line with *long* term average...

Makes you think 🧐 🤔