Weekly Market update 11/22/2024
After giving back almost half of the post-election rally, stocks steadily climbed throughout the week and the S&P 500 entered the weekend less than 1% below its all-time closing highs. Heading into the end of the year, the path of least resistance for stocks appears higher as the trend is very favorable, seasonality is strong, corporate share buybacks return, and S&P 500 earnings growth for 2024 is expected to be around 10% (per FactSet). Bears, however, would contend that valuations are stretched, Federal Reserve policy risk is underpriced, and tariff risks are underappreciated. Ultimately, the week’s action was tame, and we are not seeing clear signs of exuberance or animal spirits that often hallmark short-term stock market tops…
“COMEDIAN” INDEED
While we might not have seen animal spirits in stocks this week, the art market was a different story. On Wednesday, Sotheby’s auctioned off a piece titled “Comedian”, a literal banana duct taped to a wall at a 37-degree angle, 5.74 ft from the ground, and replaced every 7-10 days: for $6.2 million. The winner was awarded a roll of duct tape, a 14-page instruction manual on how to install the banana, and a certificate of authenticity guaranteeing the provenance. It is worth noting that this piece of art debuted in 2019 and was sold for $120,000. Perhaps the joke is on us?
Ian G. Browning, CFA
Managing Director, Investment Strategies | Shareholder
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