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Jonathan Todd
@yontodd.substack.com

I know I should be writing about rates and serious macro things, but I took some liberties and compared the market’s crap breadth with how MLB has worked in recent years The main takeaway is clearly that if you don’t like the Dodgers, you probably don’t like resilient equity portfolios

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Jonathan Todd
@yontodd.substack.com

Regardless... Some wild data out this week on how extreme this skew has become: - ~45% of S&P 500 stocks have a negative beta to the index - Top-heavy skew is breaking standard portfolio hedges - How buying SPX puts is like buying insurance on the Dodgers yontodd.substack.com/p/sp500-nega...

yontodd.substack.comThe diversification illusion: 45% of the S&P 500 now has negative beta - and the index hedge is brokenRoughly 45% of S&P 500 stocks now move inversely to the index. Why cap-weighted tech skews the market like MLB payrolls, and why index hedging is broken.