LiveWire

Want a new formula for the S&P so it's understandable for your smallest child? Easy. Pick 5 big stocks, 495 insignificant ones, and you basically get the S&P500. With a little luck, they'll learn the lesson and launch a billion dollar startup. 

Investors are going into the stock market. COVID-19 has elevated German retail stock trading to completely new levels. Ø retail trading activity 2020 to date is >2x the long term Ø

The EV maker's inclusion into the S&P 500 has spurred a new round of buying of the stock, pushing it up to record high valuations

JP Morgan thinks the equity market has one of the best setups for sustained gains in years. According to their Chief US equity strategist, the road is clear for 4500 in S&P 500 by December 2021. Here are the 7 main reasons behind this bullish call: 1) key risks subsiding (e.g. US elections, pandemic and vaccine news, etc.); 2) Central bank policy continues to be accommodative and a major pillar of support for equity multiples; 3) Expect some incremental fiscal stimulus; 4) Less incremental negative headlines on issues of trade; 5) Positioning has been light and below average levels for systematic quant but also discretionary investors given stubbornly high market volatility. They expect continued volatility compression in the coming months to drive a mechanical re-leveraging process further supporting equity multiples; 6) Corporates will likely deploy incremental capital towards M&A and buybacks; 7) Earnings expectations still have room for upside surprise with 2022 growth likely pulled forward to 2H21. - source: JPM, The Market Ear 

Average mutual fund exposure to FAAMG (Facebook, Apple, Amazon, Microsoft, Google) fell to a 5.4% underweight, the largest underweight during the past five years. Each of the five FAAMG stocks are among the 25 most underweight positions across large-cap mutual funds (source: Goldman Sachs, The Market Ear).