"This type of extreme narrow leadership barely existed in earlier decades"

1. Real wages. "With headline inflation coming it at +3.8% y/y in April, that means real average hourly earnings growth (adjusted for CPI) slipped into negative territory for the first time since April 2023".

2. Redbook Index. Same-store retail sales jumped 9.6% YoY for the week ending May 9 (7.8% prev).

3. Supply chain volatility. "The GEP Global Supply Chain Volatility Index jumped to 1.64 in April, from 0.57 in March, its highest reading since October 2022 ... The rush to build inventories pushed global purchasing activity to its strongest level in more than four years and intensified pressure on suppliers. Reports of item shortages rose to their highest level since November 2022."

4. Risk appetite. "The GS Risk Appetite Indicator - which aims to track the level of global market risk appetite and risk aversion based on various market variables - is now at its highest level in over five years, and one of the highest readings on record."

5. Outperformance breadth. "This type of extreme narrow leadership barely existed in earlier decades, so most signals are clustered in the post-2020 market regime. Interesting data point, but hard to draw strong conclusions from only a handful of occurrences."

ICYMI