DC Lite #378

In partnership with

1. Active listings. "The number of homes for sale topped 1 million for the first time since Winter 2019 and exceeded 2020 levels for the second month in a row ... Still, inventory remains 14.4% below typical 2017–2019 levels, though May’s gains indicate the market is closing the gap at an accelerating pace."

2. Challenger job cuts. "Through May, employers have announced 696,309 job cuts, an increase of 80% from the 385,859 announced in the first five months of last year. It is 65,049 cuts away from matching the entire year’s total for 2024."

3. Retail investor allocation. After declining for 4 consecutive months, AAII allocation to stocks stabilized in May while allocations to bonds and cash ticked down.

4. Retail flows. "Retail investors have eased their purchases of Mag7+ names (includes AMD and NFLX)."

5. Small-cap seasonality. "Small-cap stocks have outpaced their bigger counterparts 60% of the time in June since 1990 ... That seasonality has been even more pronounced when larger stocks are trouncing smaller ones, as they are this year: In those instances, the returns of smaller stocks have bested the larger peers in June every single time."

ICYMI