5-Chart Friday (3/13/20)

By Charlie Bilello

13 Mar 2020


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

1. Oil Crashes

Crude Oil fell over 24% on Monday, the 2nd largest 1-day decline in history.

Energy stocks fell in tandem, with the largest 5-day decline for the Energy sector ever ($XLE -34.6%).

2. Remember Tilray?

It’s now down 98% from its peak.

3. Carnage in Stocks…

-Stunning declines in Airlines and Cruises as investors expect travel and vacations to be put on hold for a while.

-Uber down 50% from its IPO price last year. $UBER

-Boeing and Fedex down 65% from their peaks. $BA $FDX

-Even Biotech stocks (which one might think could benefit with a potential cure to this virus) were down 17% in 2 days this week, their largest 2-day decline ever.

4. Carnage in bonds…

-Investment Grade Corporates: -12% in 4 days, largest 4-day decline ever. $LQD

-Muni Bonds: -7.3% in 3 days, largest 3-day decline ever. $MUB

-TIPS: -7.2% over 4 days, largest 4-day decline ever. $TIP

-Total US Bond Market: -8.5% over 3 days, largest 3-day decline ever.

5. Balance Sheet Explosion

Fed balance sheet moved up to $4.31 trillion, highest level in 20 months, up $153 billion over the last 2 weeks and $552 billion over the last 6.5 months.

A new balance sheet high is expected shortly, with many trillions more to come.

6. The Question

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

Have a great weekend everyone!

-Charlie

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About the author

Charlie Bilello

Charlie is the founder and CEO of Compound Capital Advisors.

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