5-Chart Friday (7/17/20)

By Charlie Bilello

17 Jul 2020


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

1) Bonds for the Long Run?

Total returns over the last 20 years…

US Stocks: +227%

Long-term US Corporate Bonds: 378%

Chart via YCharts

Corporate bonds yields were at 8% 20 years ago.

Today they’re at 2.05%, an all-time low.

The future is not the past.

Chart via YCharts

2) The Tesla Mania

The Tesla mania reached new heights on this week when the stock ran past 1,600 and 1,700 on Monday before reversing course at 1794.99.

Data via YCharts

At one point on Monday, Tesla’s market passed JPMorgan to become 10th largest US company.

Why is this fascinating?

  • JPMorgan Revenue over last yr: $115 billion
  • JPMorgan Net Income over last yr: $30 billion
  • Tesla Revenue over last yr: $26 billion
  • Tesla Net Income over last yr: -$144 million
Chart via YCharts

3) Netflix and the Stay-at-Home Economy

Netflix reported revenues up 24.9% over the past year, the company’s 29th consecutive quarter of >20% YoY growth.

Data via YCharts

Paid subscribers surged higher in the first half of the year to 193 million, an increase of 15.5% from year-end. For comparison, subscribers grew 20% in all of 2019 and 18% in all of 2018.

4) COVID Trackers

Reported Tests, Cases & Deaths as % of Country Population…

(Note: the key word here is “reported.” There’s a huge variation in testing rates from country to country and how deaths are counted. These variations have a large impact on the data.)

US breakdown by state…

5) Mortgage Rates Move Closer to 0

The 30-Year Mortgage Rate in the US fell below 3% for the first time in history: 2.98%.

The Fed remains a buyer at any price.

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

Have a great weekend everyone!

-Charlie

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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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