6-Chart Saturday (1/2/21)

By Charlie Bilello

02 Jan 2021


This week’s post is sponsored by YCharts. Mention Compound to receive 20% off your subscription when you initially sign up for the service.

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

1) 12 in a Row

The Nasdaq 100 was up 49% in 2020, its 12th consecutive positive year, a new record…

The 2020 recession was different in every way from 2008. The lockdowns and transition to say-at-home economy were the best thing that could have ever happened to big tech, pulling forward years worth of demand…

2) Bitcoin Goes Bananas

The walking billboard for bitcoin continues with the $900 billion stimulus bill and $741 billion defense spending bills now signed into law.

While congress continues to fight one another over exactly how much more money to borrow and spend, both sides seem to be on board with much higher levels of debt.

Market participants are quickly coming to the realization that the less the Federal Government and the Federal Reserve care about the value of the dollars in your pocket, the less they are worth. The best narrative in support of Bitcoin is that there should be an decentralized alternative to this centralized madness.

3) Streaming Up, Networks Down

The largest streaming services saw a 50% jump in US subscribers during 2020…

Source

The losers: network TV ratings, once again…

Source

4) Tesla Tops All

Tesla was the best performing stock in the S&P 500 last year and it wasn’t even close…

Data via YCharts

The worst performer? No surprise: Carnival Cruises…

Data via YCharts

5) Bonds Boom

Bonds had another stellar year as yields collapsed when the Fed moved rates to 0% and started the largest bond-buying program in history (+$3.2 trillion in 2020).

Data via YCharts

6) Price Targets = Pointless

The S&P 500 ended the year up 18.5%, besting all Wall Street forecasts in spite of a global pandemic, the largest quarterly economic contraction ever (-31% in Q2), and the highest intra-year Unemployment Rate (14.7%) since the Great Depression.

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

Wishing everyone a Happy and Healthy New Year!

-Charlie

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About the author

Charlie Bilello

Charlie is the founder and CEO of Compound Capital Advisors.

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