5-Chart Friday (12/4/20)

By Charlie Bilello

04 Dec 2020


This week’s 5-Chart Friday is sponsored by YCharts. Mention Compound to receive 20% off your subscription when you initially sign up for the service.

This image has an empty alt attribute; its file name is image-6.png

Enabling smarter investment decisions & better client communications.

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

1) Top 30 Stocks Over the Last 30 Years

Here are the top 30 stocks in the S&P 500 over the past 30 years…

Data via YCharts

#1: Amazon

2) Inflation Up, Corporate Bond Yields and Mortgage Rates Down

Inflation expectations are rising, hitting their highest levels since May 2019.

Powered by YCharts

At the same time, we’re seeing record lows in both high yield (4.70%) and investment grade (1.85%) corporate bond yields…

Powered by YCharts
Powered by YCharts

…and new all-time lows in US Mortgage Rates (30-year down to 2.71%).

3) Dollar Down, Bitcoin Up

The US Dollar Index hit a 31-month low this week as the prospects for additional stimulus and higher national debt continue to increase.

In related news, Bitcoin has hit a new all-time high, surpassing the previous record from December 2017.

Powered by YCharts

4) Employment Comeback Continues

The US Unemployment Rate moved down to 6.7% in November, declining for the 7th consecutive month from a peak of 14.7% in April. Prior to the covid-related shutdowns it stood at 3.5%, a 50-year low.

5) The $100 Billion Club

In 2020, we’ve seen two companies hit the $100 market cap faster than almost any company in history: Zoom and Snowflake. Both reported earnings this week.

-Zoom was founded in 2011 and hit the $100 billion mark in September.

Powered by YCharts

Zoom’s revenue jumped to $777 million in the 3rd quarter, a new high and 367% increase over last year. Net Income also hit a high of $198 million.

-Snowflake was founded in 2012 and hit the $100 billion milestone today.

Powered by YCharts

This is an exponential increase from where it stood just a few years ago in the private markets…

Snowflake reported record quarterly revenues this week of $160 million, up 119% over the past year. With the stock currently trading at 219x sales, investors seem to be betting this growth will continue for a while.

__

And that’s it for this week. Thanks for reading.

Have a great weekend everyone!

-Charlie

To sign up for our free newsletter, click here.

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.

Share this post

Recent posts
Tuesday Trends (5/11/21)
What Can You Do About High Valuations?