5-Chart Friday (2/7/20)

By Charlie Bilello

07 Feb 2020


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

1) All-Time Highs … Again

Well, that was quick. After a brief 3% pullback on “coronavirus concerns,” the S&P 500 and other major US indices rocketed back to new all-time highs this week.

For the S&P 500, it was the 8th all-time high of the year and 250th over the past 7 years.

The only other time with more all-time highs over a 7-year period?

You guessed it … the late 1990s/early 2000s during the dot-com bubble.

2) Tesla Shoots the Moon

This week Tesla became a full-fledged mania, rising above 700, 800, and 900 for the first time…

At its peak of $968.99 on Tuesday, it was up almost 50% on the WEEK, over 5x higher than its low just 8 months ago, and over 200% above its 200-day moving average…

Its market cap blew past storied companies like Nike, McDonald’s and Oracle.

It also surpassed the market value of the Big 3 (GM/Ford/Fiat Chrysler) and Daimler … combined.

And one more just for fun: it surpassed the value of Bitcoin…

Where is Tesla headed next? No one knows, but I ran a poll this week on Twitter and this was the response…

3) 112…

As in 112 consecutive months (9+ years) of jobs growth in the US, by far the longest streak in history.

If you thought that would be enough to stop the Fed from continued easing, you’d be wrong. The market is now pricing in another rate cut by July (move down to 1.25% to 1.50%).

4) Nasdaq 100: Tenbagger

The Nasdaq 100 is now 10x higher than its low in March 2009, a gain that Peter Lynch used to refer to as a “tenbagger.”

Not to be outdone, the 3x leveraged technology ETF is 196 bagger, 196x its March 2009 low. No, that’s not a typo.

Investors continue to go where the growth is, namely large cap tech. Revenue growth among the tech leaders remained strong in the 4th quarter and investors today seem more than willing to pay a premium for it.

5) Stocks Bonds for the Long Run

Long-term bonds have outpaced US stocks over the past 20 years…

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

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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