5 charts from the past week that tell an interesting story in markets and investing… 1) The King of Buybacks Apple has bought back $338 billion in stock over the past 7 years, which is greater than the market cap of 492 companies in the S&P 500. 2) Top S&P 500 Stocks … Last 20 […]
5 charts from the past week that tell an interesting story in markets and investing… 1. Dow Winners and Losers… It’s a tale of sectors in the Dow this year. Large tech names (Microsoft and Apple) are acting as if they are immune to recession while the shutdown has hit Industrials (Boeing, Raytheon), Energy (Exxon […]
Talk of a “second wave” of COVID-19 in the US has begun. Why? Let’s take a closer look through a series of questions and answers… What’s going on with new cases? New daily cases in the US hit their highest level ever yesterday (38,672), surpassing the prior high from April 25 (36,006). But I thought […]
In 2000, the dot-com bubble began to burst. Tech stocks finished the year down 42%. (note: using S&P 500 technology sector ETF ($XLK) as a proxy for the tech sector.) In 2001, the recession officially began, and tech stocks finished down 23%. In 2002, the carnage finally ended, but not before another 38% decline. The […]
5 charts from the past week that tell an interesting story in markets and investing… 1. The Worst Risk/Reward in History? Yields on investment grade US corporate bonds hit a new all-time low this week: 2.23%. 2. The Irrational Investor Would you pay someone $205 for an asset worth only $21.87? Investors in the Ethereum […]
Would you pay someone $205 for an asset worth only $21.87? Of course not; what a ridiculous question. And yet, investors in the Ethereum Trust ($ETHE) are doing just that, paying a stunning 837% premium above the net asset value (NAV) of the underlying holdings (Ethereum, a cryptocurrency). Why would anyone do such an irrational […]
There’s been a lot of confusing reports lately on COVID-19. Some are saying the worst is over while others are saying a second wave is coming that will be worse than the first. Let’s run through some questions and answers to parse out where we are with the virus and where we may be headed… […]
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, […]
Non-taxable stimulus checks, extra unemployment benefits paying many workers more than when they were working, forgivable loans for small business, grants and loans for large corporations, payments to state and local governments, grants for healthcare providers, and more. “How are we paying for all of this?” I’ve been getting this question more and more lately. […]
The yield on investment grade corporate bonds has moved all the way down to 2.35%. If the month ended today, that would be the lowest monthly close in history. Why is this important? Because the single best predictor of future returns for bonds are its starting yield. On average, the higher the starting yield, the […]