5 charts from the past week that tell an interesting story in markets and investing…
1. Copper and Coronavirus
Down 12 days in a row, this is the longest down streak in history for Copper (data going back to 1971).
Who is the largest importer of Copper?
You guessed it … China. Fears about the coronavirus and its impact on the Chinese economy are growing.
2. When Tech Ruled the World
For the first time ever, there are 4 trillion-dollar companies in the US: Apple, Microsoft, Google, and Amazon.
3. Tesla the Terminator (of shorts)
a) Tesla’s market cap spiked higher after its earnings report, surpassing General Electric.
Fun fact: in 1897, General Electric and Westinghouse Electric purchased Nikola Tesla’s patents for an induction motor that ran on alternating current (AC). AC would become the dominant source of power in the world. [side note: for a great historical fiction read on the current wars of the 1890s (Edison/Westinghouse/Tesla), check out “The Last Days of Night” by Graham Moore. Highly recommend.]
b) “Net income? Where we’re going we don’t need net income.”
Tesla Net Income, Millions…
— Charlie Bilello (@charliebilello) January 29, 2020
’19: -862
’18: -976
’17: -1,961
’16: -675
’15: -889
’14: -294
’13: -74
’12: -396
’11: -254
’10: -154
’09: -56
’08: -82
’07: -78
Tesla Stock Price
’20: 619
’19: 418
’18: 333
’17: 311
’16: 214
’15: 240
’14: 222
’13: 150
’12: 34
’11: 29
’10: 27$TSLA
4. The Amazing Amazon
a) Amazon vs. Retailers over the past 5 years…
b) $10,000 invested in Amazon’s IPO in May 1997 is now worth … over $10 million.
c) … but achieving such gains was anything but easy. You would’ve had to sit through a 94% drawdown (’99-’01) and 10 years without a new high…
d) Amazon’s incredible revenue growth over the years (73 consecutive quarters of double-digit growth)…
Amazon Revenue (Billions)…
— Charlie Bilello (@charliebilello) January 30, 2020
2019: 281
2018: 233
2017: 178
2016: 136
2015: 107
2014: 89
2013: 74
2012: 61
2011: 48
2010: 34
2009: 25
2008: 19
2007: 15
2006: 11
2005: 8.5
2004: 6.9
2003: 5.3
2002: 3.9
2001: 3.1
2000: 2.8
1999: 1.6
1998: 0.61
1997: 0.15$AMZN
5. Yields: How Low Can They Go?
US Investment Grade Bond yields have moved down to their lowest level ever: 2.64%.
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Ok, so that’s more than 5 charts, but I couldn’t resist.
Have a great weekend everyone!
-Charlie
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