YWR: Boom Charts
Everyone is flapping their wings and asking themselves how the market can make new highs.
But not you.
Because you see the mega bull market unfolding.
These are just the gentle foothills of something bigger.
The animal spirits are stirring. Money is moving again.
That’s the theme of this month’s killer charts.
This month’s chart pack is 32 charts to help keep us in the trade for S&P 10,000.
A link to the full presentation is at the bottom of the post.
Slide deck sections
S&P 500 Earnings estimates
Fund Manager Survey highlights
International Equities Perspective
Bank Lending
Investment Banking Trends
Let’s go though the top 10 charts.
Top 10 Charts
#1 US Earnings are curving upwards. The market tracks earnings and earnings are going vertical. That’s simple reason the market is making new highs.
#2 It’s not just Mag7 anymore. The earnings growth is widespread. Ex-Mag7 stocks will grow EPS 16% in 2026.
#3 Money is moving to the periphery. And that’s a good thing. The investor overweights in EM, Materials, Commodities and Banks are positive. The previous strong dollar regime, and positioning overweight in US tech was actually defensive. We want money to leave the US. It’s not a bad thing. It’s a sign of growth. As money moves into Emerging markets, their FX strengthens, inflation falls, the central banks lower rates and it kicks off global growth. The boom goes global.
#4 International themes are working. The top investment themes in the world are European defence, Taiwan tech, and international banks. This is great to see. It’s healthy.
#5 Investors expect higher rates. That’s a good thing. Higher rates means higher growth.
#6 Global PMI’s are all green. The boom is global. US, EM, DM.
#7 US Bank loan growth is accelerating from the 3-5% p.a range to 6-8%. The chart of total US bank loans is curling upwards (similar to EPS… because it’s all the same thing). This is the big trend nobody is talking about. Banks in the US, Europe and Japan are coming out of their post GFC hibernation.
#8 Japanese bank loans are going vertical. It took a while but Japanese bank loans have made back all the late 1990’s deleveraging and are growing strongly. We call this multi-year Japanese bank lending boom still to come The Godzilla Trade.
