5 charts from the past week that tell an interesting story in markets and investing…
1. From Nikola to …
The mania is back, this time in a company called Nikola ($NKLA), named after famous inventor Nikola Tesla.
Hyped as a potential competitor to Tesla, the hybrid truck design company’s stock has skyrocketed. On Tuesday, its market cap moved above $33 billion, more than that of Ford.
Why is that remarkable? It has $0 revenue.
2. … Tesla
Speaking of manias, Tesla hit an all-time high this week, and is up over 120% year-to-date. In mid-March, it was down over 10% on the year.
Tesla crossed above $1,000 for the first time on Wednesday.
At $189 billion, Tesla has a higher market cap than GM, Ford, Fiat Chrysler, Daimler, and Ferrari … combined ($178 billion).
3. Volatility Makes a Comeback
The Dow fell 6.9% on Thursday, the 27th largest 1-day decline in history (data back to 1896 when the Dow started). 6 out of the top 50 declines have occurred in 2020. For comparison, 2008 only had 5 of the top 50.
The 48% spike in the Volatility Index ($VIX) was the 7th largest ever (note: $VIX started in 1990).
3. $26 trillion and Counting…
U.S. National Debt moved above $26 trillion for the first time, only 2 months after hitting $24 trillion (click here for recent blog post on this).
Debt as a % of GDP has never been higher…
US National Debt as % of GDP…— Charlie Bilello (@charliebilello) June 10, 2020
Today: 121% pic.twitter.com/L4z6yyFtMh
5. Leaving on a Jet Plane…
Investors have been piling into the Airlines ETF ($JETS), betting on a recovery for the sector as the economy reopens. Assets in $JETS rose from $34 million in March to $1.67 billion.
What if there’s a “second wave” of COVID-19 and a second lockdown? From a poll I conducted this week, it may be more difficult to get broad compliance.
And that’s it for this week. Thanks for reading.
Have a great weekend everyone!
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