The U.S.-Iran war has lasted over half a year, yet the S&P 500 continues to break new historical highs? @KobeissiLetter breaks down the index components to explain why we’re now in an era of “bull and bear coexistence.” 💡 The conclusion: Once the “invisible discount” caused by pessimistic macroeconomic conditions is eliminated, a powerful upward rally will follow. Compared to market expectations at the start of the year—at least three rate cuts in 2024—the current landscape has shifted to one rate hike already implemented, with expectations of three more hikes before mid-next year, oil prices exceeding $100, and inflation nearing 4%. Even so, the S&P 500 remains at historical highs. Breaking down its components reveals that since late March, just ten stocks—$NVDA, $MU, $AAPL, $MSFT, $AMD, $GOOGL, and others—have accounted for 70% of the index’s gains. Meanwhile, 60% of the index’s components are still in “bear market” territory, down at least 20% from their peaks. This shows that the AI narrative is even stronger than most realize, enabling the overall index to rise despite worsening macroeconomic conditions.