5-Chart Friday (3/20/20)

By Charlie Bilello

20 Mar 2020


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

1. Back to 0%

In a 2nd emergency cut, the Fed moved 100 bps to bring interest rates back down to an all-time low of 0.00-0.25%. Other Central Banks cutting rates this week: New Zealand, Canada, Norway, UK, Australia, South Africa, Taiwan, Philippines, Brazil, Indonesia, Poland, Turkey, Czech Republic, Saudi Arabia, Hong Kong, South Korea, and Chile.

Many more rate cuts are expected in the coming weeks and months.

2. New High in Volatility

The $VIX closed at 82.69 on Monday, the highest closing level ever (see recent post here). The prior record was 80.86 on November 20, 2008.

3. Deflation Fears

US Inflation Expectations (10-yr breakeven) fell to their lowest levels since January 2009: 0.50%.

4. Fed Goes Where No Fed Has Gone Before

The Fed balance sheet moves up to $4.668 trillion, a new high. In the last week it increased $356 billion, the largest weekly increase ever (prior record was $292 billion from Sep 24-Oct 1 in 2008).

5. Toilet Paper Boom

Walmart closed at a new all-time high today on record toilet paper sales. $WMT

In related news, sales of Clorox are booming.

6. Commodity Crash

The CRB Commodity Index closed at its lowest level since December 1972, down 72% from its 2008 high. $CRB

Crude Oil closed at $20.83, its lowest level since February 2002. It was at the same level in 1990, 30 years ago. $WTIC

7. Tesla Tanks

Tesla is down from its peak in early February. Was up over 120% on the year, now down 14%. $TSLA

8. Extreme Fear

The 5-Day Moving Average of Equity Put/Call Ratio hit its highest level ever, surpassing the prior record from November 2008. With data going back to 2003, there has never been as much fear as there is today in the options market.

Ok, so that’s more than 5 charts, but a lot went on 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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