DC Lite #375

1. Unsold housing inventory. There's a record $698bn worth of homes for sale in the US. Nearly half of that ($331bn) is considered "stale inventory" which has been on the market for at least 60 days.

2. Carry trade. "An index of carry returns — for which a trader borrows in a low-yielding currency and then invests in another offering higher returns, hit a seven-year high in late May."

3. Hedge funds vs. Tech. "HFs net bought US Info Tech stocks for a 3rd straight week and every day [last] week ... [the] week’s notional long buying in the sector was the largest in more than 10 years (+1.6 z score), pointing to a positive turn in sentiment."

4. Hedge funds vs. Mag 7. "Despite last week’s significant buying in tech HF exposure to Mag 7 remains at 5+ year lows."

5. Mag 7 EPS growth. The Mag 7 reported YoY earnings growth of 27.7% in Q1, nearly 3x that of the Other 493.

ICYMI