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Reflection of the day
2021.12.14
President Xi Jinping’s actions have led to the combined stockmarket value of China’s tech firms dropping by more than $1trn in 2021.
At the same time America’s biggest five technology groups—Alphabet, Amazon, Apple, Facebook (sorry, Meta) and Microsoft—have gained a combined $2.6trn.
2021.12.14
Are Stocks In A Bubble?
“No man ever steps in the same river twice, for it's not the same river and he's not the same man.” - Heraclitas ( c. 535 BC ).
2021.11.24
"Not everyone needs to use crypto. But I've never met anyone who started using it and didn't immediately grasp its value. Whether its sending money across the world, playing a game against someone in the Philippines, or joining an NFT community, the only way to get it is to try it, and us talking about it isn't going to get very far. Look if you want, you can just set up a Phantom Wallet, I'll happily send you some Sol.”
Unknown
2021.11.24
The Power Of Small Consistent Effort
“A small consistent effort is ideal for anyone, regardless of experience… So if we take 1.01 and we raise that to the power 365 — so in other words, we multiply 1.01 x 1.01 x 1.01 x 1.01 etc... 365 times - it equals 37.8. Notice that this is almost 37 times bigger than doing nothing. This is the result you’d get if you just improved 1% more daily.”
2021.11.22
Wanna crypto? Caveat emptor…….
2021.11.21
Why does Chine care so much about Taiwan ? Could be the graph below:
2021.11.15
LOCKING IN LOW YIELDS WHILE YOU CAN ……
US high-yield bond sales reached an annual record of $432.4bn on Tuesday as companies rush to lock in low coupons while they still can.
Cheap funding costs have unleashed a prolonged pile-on of debt issuance, and borrowers have been hurrying to take advantage of the opportunity before the Federal Reserve eventually raises interest rates.
That could come sooner than expected amid inflation pressures, though Fed chair Jay Powell is still preaching patience as of last week.
This dash has taken 2021’s issuance beyond 2020’s high mark $431.8bn, which topped a prior record set in 2012.
2021.11.15
"The gap between demand and supply is now large enough that high inflation is likely to be reasonably sustained"
2021.11.08
What we are now witnessing might best be labelled ‘Tarantino Markets.’ In one room we’ve got stocks like Peloton, Zillow, and Penn Gaming getting shot, and in another room, investors are snorting call options like it’s cocaine.
For what it’s worth, it all reminds of the last days of the dot.com bubble. The horses that can’t keep up with the biggest of thoroughbreds are being viciously tossed aside while the bullish bets get wilder and more concentrated.
Peter Atwater
2021.10.25
One of the definitions of wealth creation is the accumulation of market value in excess of the value that would have been obtained if the invested capital had earned one-month Treasury bill interest rates.
Approximately 25,300 companies that issued stocks since 1926 are collectively responsible for lifetime shareholder wealth creation of nearly $35 trillion, measured as of December 2016.
However, just five firms (ExxonMobil, Apple, Microsoft, GE and IBM) account for 10 per cent of the total wealth creation.
The 90 top-performing companies, approximately 0.35 per cent of the companies that have listed common stock, collectively account for over 50% of the wealth creation.
The 1092 top-performing companies, slightly more than 4 per cent of the total, account for all of the net wealth creation. Again this between 1926 and 2016.
2021.10.13
RIP, 60/40. The recent selloff in equities and Treasuries was probably just a harbinger of what's to come for the popular stock-bond strategy, a chorus of Wall Street analysts warns. September offered a taste of the pain, with a Bloomberg model tracking a 60/40 portfolio suffering the worst monthly drop since early 2020. By Goldman's calculation, a measure of such portfolios has dropped 4% in the past month, and could swell to 10% by year-end.
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