A Bull Market in Mega-Cap Growth Stocks Only

The bull market doesn’t register in the equal weight index...

Highlights

• The bull market doesn’t register in the equal weight index...

•… and small-cap struggles show a slow economy

• Below-average VIX reflects investor complacency

• Japan’s equity market is also enjoying a robust upward run

Key Takeaways

• Japanese Equities Surge: The big story is the broad TOPIX Composite breaking out to a fresh all-time high on Friday, even in the face of post-election uncertainties, an indecisive central bank, and a fractured economic relationship with the White House. The Japanese market is up +23% over the past year, which is incredibly impressive (the S&P 500 is up +20%), and as a preview to the monthly Strategizer (out later today), Japan was one of the few markets to have seen an improvement in its equity scorecard.