5-Chart Friday (2/21/20)

By Charlie Bilello

21 Feb 2020

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

1) 1.90% … for 30 Years?

The 30-Year US Treasury Yield closed at an all-time low today: 1.90%.

On October 26, 1981, it closed at an all-time high of 15.21%. My how times have changed.

2) Software is eating the world. The world is eating pizza.

Two revolutionary companies went public in the summer of 2004. These are their returns…

Google: +2,936%

Domino’s Pizza: +5,706%

3) The final frontier.

Another day, another mania. This time in Virgin Galactic ($SPCE).

By Wednesday of this week, its stock had more than tripled … this year alone, passing Xerox with a market cap of over $8 billion.

Why is that interesting?

Virgin Galactic has revenues of $3 million and a net loss of $138 million versus $9 billion in revenue and $1.3 billion in net income for Xerox.

A joke for these times…

4) Top 20 S&P 500 stocks over the last 20 years.

Starting near the bubble peak in 2000, the last 20 years were difficult for the broad market (+4.4% annualized return with two 50+% declines in between). Here are a few stocks that bucked that trend…

5) Golden Slumbers Awakening

Central Banks around the world continue to ease, pushing real interest rates (rates minus inflation) further into negative territory. Every major developed country has a negative real central bank rate, and many emerging countries are joining the party as well (China cut rates again this week).

Gold loves nothing more than falling real yields, and it closed at a 7-year high today…

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

Have a great weekend everyone!


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