Five Top Charts and Insights from Wednesday

Closelook At Key Market Trends and Highlights

(1) OGs refuse to sell bitcoin

If they don’t sell when prices are low or when prices are high, when will they?  Wallets holding $10 million or more account for over half of all wallets. Now that’s dedication!

"Below we see the distribution of [Bitcoin] wallets by the value they hold. It’s remarkable how committed the OGs have been, despite three harsh winters and massive profits ... (Jurien Timmer)

Jurien Timmer, Fidelity

For more information, click here.

(2) A secular valuation trend or just a bubble

"Small caps and companies that pay a high dividend yield are currently 1.5 standard deviations cheaper than their average for the last 35 years. High-margin companies [are] some 2.5 standard deviations above the 35-year norm." (David Kostin)

David Kostin - Goldman Sachs via John Authers - Bloomberg

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(3) SP 500 sector outperformance

Since the start of the bull market, the following cyclical sectors have outperformed the index: S&P 500 Information Technology, Communication Services, and Financials.

Ed Yardeni has recommended them along with Industrials and Energy. He is sticking with all of them except for energy.

He thinks they should all get a boost from stronger-than-expected economic growth over the next few months.

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(4) Wage gains have outpaced inflation for 18 months now

For 18 months now, wage gains have outpaced gains in inflation.

Bureau of Labor Statistics via Heather Long

In October 2024, wage gains were 4%, and inflation settled at 2.6%. For more information, click here: