5-Chart Friday (1/31/20)

By Charlie Bilello

31 Jan 2020


5 charts from the past week that tell an interesting story in markets and investing…

1. Copper and Coronavirus

Down 12 days in a row, this is the longest down streak in history for Copper (data going back to 1971).

Who is the largest importer of Copper?

You guessed it … China. Fears about the coronavirus and its impact on the Chinese economy are growing.

Largest Copper Importers. Source: OEC World

2. When Tech Ruled the World

For the first time ever, there are 4 trillion-dollar companies in the US: Apple, Microsoft, Google, and Amazon.

Image

3. Tesla the Terminator (of shorts)

a) Tesla’s market cap spiked higher after its earnings report, surpassing General Electric.

Fun fact: in 1897, General Electric and Westinghouse Electric purchased Nikola Tesla’s patents for an induction motor that ran on alternating current (AC). AC would become the dominant source of power in the world. [side note: for a great historical fiction read on the current wars of the 1890s (Edison/Westinghouse/Tesla), check out “The Last Days of Night” by Graham Moore. Highly recommend.]

b) “Net income? Where we’re going we don’t need net income.”

4. The Amazing Amazon

a) Amazon vs. Retailers over the past 5 years…

b) $10,000 invested in Amazon’s IPO in May 1997 is now worth … over $10 million.

c) … but achieving such gains was anything but easy. You would’ve had to sit through a 94% drawdown (’99-’01) and 10 years without a new high…

d) Amazon’s incredible revenue growth over the years (73 consecutive quarters of double-digit growth)…

5. Yields: How Low Can They Go?

US Investment Grade Bond yields have moved down to their lowest level ever: 2.64%.

Ok, so that’s more than 5 charts, but I couldn’t resist.

Have a great weekend everyone!

-Charlie

Disclaimer: All information provided is for educational purposes only and does not constitute investment, legal or tax advice, or an offer to buy or sell any security. For our full disclosures, click here.

About the author

Charlie Bilello

Charlie is the founder and CEO of Compound Capital Advisors.

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