There is a big theme going on right now - and that's the inability for important indexes to get above their 2021 highs.
You're seeing it at the individual stock level, you're seeing it across specific sectors and industry groups, and you're definitely seeing it in the S&P500 and Nasdaq100 Equally-weighted.
These indexes below eliminate the excessive weightings in certain stocks and sectors and equally-weight all of its components.
Look at both of them still stuck below their 2021 highs:
The NYSE Oil Index includes the leading companies involved in the exploration, production, and development of petroleum.
This index dates back to 1984 so it's got some history to it.
It also includes a lot of Energy stocks headquartered outside the United States, giving investors a much more global perspective, as the NYSE tends to do.
On Friday, this index closed at the highest price ever.
How I learned it more than a couple of decades ago was that there were 3 asset classes: Stocks, Bonds AND Commodities.
But a funny thing happened throughout the 2010s. Commodities did so poorly, particularly when you compare their performance to Stocks and Bonds, that investors completely forgot that Commodities were an asset class.
Many newer investors never even knew in the first place.
But yes folks, there are 3 asset classes. And that 3rd one that everyone conveniently forgot about is the one that is dominating returns this cycle.
Here is a ratio of Commodities to Bonds in a strong uptrend as everyone keeps telling me that interest rates are falling.
It's actually the exact opposite. Interest rates keep going up, as Commodities rip higher and bonds keep falling apart.