Interesting charts (again)

Another very interesting graph from the internet, this one from Connor (Peachtree Capital) comparing the correlation of the EW S&P500 to the cap weighted index.

That’s daily data, and over 3 months, a longer span of 2 years is shown below. You can see the EW index is normally extremely close to that of the broader market.

We use it to suggest that the current period is quite unusual, and that can suggest potential “good value” in the EW trade.

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