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10k Words Equitable Investors June 2026 (2-minute read) A takeover of the US equities market by foreign investors and passive vehicles; leading into the equal-weighted index lagging. Demand for power surging as free cash flow generation at the "Mega Tech" collective goes the other way; fund managers' most crowded trade amid all that is semi-conductors; and AI attracts new founders like moths to the flame. The value of US equities and housing is at record levels relative to GDP; but investor sentiment remains positive; and the number of investors expecting multiple expansion is evenly balanced with those predicting contraction. Elsewhere, we see evidence of softness in the Australian employment market and the widened gap between the top decile and bottom decile of US consumers. Ownership share of US corporate equities 
Source: FT.com, Goldman Sachs Ratio of the equal-weighted S&P 500 to the S&P 500 index is down to 1.1, near the lowest since 2003 
Source: The Kobeissi Letter, TheDailyShot Worldwide data centre power consumption projections (TWh): 2025 - 2027 
Source: Equitable Investors, Gartner "Mega Tech" free cash flow diminished - "capital light" model gone 
Source: BCA Research Most crowded trade 
Source: Bank of America Fund Manager Survey AI-driven surge in number of startup founders 
Source: Apollo Value of US equities and housing stock relative to GDP 
Source: re:venture ASR Asset Allocation Survey - composite optimism indicator 
Source: Bloomberg, Absolute Strategy Research Survey on probability that global equity multiples will be higher a year from now 
Source: Bloomberg, Absolute Strategy Research Seek Employment Index - May 2026 
Source: Seek US consumer spending by income percentile 
Source: FT.com, Moody's Funds operated by this manager: Equitable Investors Dragonfly Fund Disclaimer Past performance is not a reliable indicator of future performance. Fund returns are quoted net of all fees, expenses and accrued performance fees. Delivery of this report to a recipient should not be relied on as a representation that there has been no change since the preparation date in the affairs or financial condition of the Fund or the Trustee; or that the information contained in this report remains accurate or complete at any time after the preparation date. Equitable Investors Pty Ltd (EI) does not guarantee or make any representation or warranty as to the accuracy or completeness of the information in this report. To the extent permitted by law, EI disclaims all liability that may otherwise arise due to any information in this report being inaccurate or information being omitted. This report does not take into account the particular investment objectives, financial situation and needs of potential investors. Before making a decision to invest in the Fund the recipient should obtain professional advice. This report does not purport to contain all the information that the recipient may require to evaluate a possible investment in the Fund. The recipient should conduct their own independent analysis of the Fund and refer to the current Information Memorandum, which is available from EI. |
