• Listen to the people: Over the last 15 years, the S&P500’s information technology sector has doubled its profit margin to 21%. The sector has outperformed the overall S&P, whose profit margin has been a stagnant 10%. While investors worry potential anti-trust regulation will derail technology companies’ growth, a recent Pew Research poll shows such regulation could be difficult for politicians to pass. Apparently, less than half of all US adults are in favor of more tech regulation.
• Are we there yet? Recent Data (including the latest ISM services survey) are starting to indicate that we may be close to the peak of economic growth after emerging from the pandemic. But history tells us that the economy can continue growing, though more leisurely, after hitting the peak. Since 1970, there have been seven economic expansions averaging 37 quarters past the strongest quarter of GDP growth. 
• More, more, more....Retail traders now account for 24% of equity trades (compared to just 15% in 2019) and don't appear to be leaving the market anytime soon. A recent study from Betterment shows that 58% of day traders actually plan to trade even more in the future. Large institutions have taken notice, with 25% already tracking retail social-media sentiment and roughly 40% interested in doing so in the future. Companies like Fidelity and Schwab also seem to be adapting their marketing to appeal to investors looking to buy specific stocks rather than diversified ETFs.
• Junky portfolios? Junk-yields are now sitting at 4.57%, which is lower than the 5% annual rise in consumer prices recorded in May. This is the first time yields on this class of riskier bonds has ever dropped below inflation. Despite this new reality, investor appetite for junk bonds has only increased, and companies are using this as an opportunity to raise cheap capital. $300 billion worth of “high-yield” debt has been issued so far this year, 40% more than was issued at this point last year.