5 charts from the past week that tell an interesting story in markets and investing…
1) All-Time Highs … Again
Well, that was quick. After a brief 3% pullback on “coronavirus concerns,” the S&P 500 and other major US indices rocketed back to new all-time highs this week.
For the S&P 500, it was the 8th all-time high of the year and 250th over the past 7 years.
The only other time with more all-time highs over a 7-year period?
You guessed it … the late 1990s/early 2000s during the dot-com bubble.
2) Tesla Shoots the Moon
This week Tesla became a full-fledged mania, rising above 700, 800, and 900 for the first time…
At its peak of $968.99 on Tuesday, it was up almost 50% on the WEEK, over 5x higher than its low just 8 months ago, and over 200% above its 200-day moving average…
Its market cap blew past storied companies like Nike, McDonald’s and Oracle.
Net income over the last 10 years…— Charlie Bilello (@charliebilello) February 4, 2020
Tesla: -$6 billion
Nike: $30 billion
Free cash flow over the last 10 years…
Tesla: -$9 billion
Nike: $27 billion
Tesla Market Cap: $161 billion
Nike Market Cap: $159 billion$TSLA $NKE pic.twitter.com/SXhcQwx5bH
Tesla’s market cap just passed McDonalds.$TSLA $MCD pic.twitter.com/SnR2frHtkE— Charlie Bilello (@charliebilello) February 4, 2020
Tesla’s market cap just passed Oracle, a company that did over $10 billion in net income over the past year alone. Tesla’s lifetime Net Income: -$6.5 billion.$TSLA $ORCL pic.twitter.com/UygaYXM0TO— Charlie Bilello (@charliebilello) February 4, 2020
It also surpassed the market value of the Big 3 (GM/Ford/Fiat Chrysler) and Daimler … combined.
Revenue over past year…— Charlie Bilello (@charliebilello) February 4, 2020
Tesla: $25 billion
GM/Ford/Fiat Chrysler/Daimler combined: $620 billion https://t.co/rFFooE8Xkm
And one more just for fun: it surpassed the value of Bitcoin…
Where is Tesla headed next? No one knows, but I ran a poll this week on Twitter and this was the response…
As in 112 consecutive months (9+ years) of jobs growth in the US, by far the longest streak in history.
If you thought that would be enough to stop the Fed from continued easing, you’d be wrong. The market is now pricing in another rate cut by July (move down to 1.25% to 1.50%).
4) Nasdaq 100: Tenbagger
The Nasdaq 100 is now 10x higher than its low in March 2009, a gain that Peter Lynch used to refer to as a “tenbagger.”
Not to be outdone, the 3x leveraged technology ETF is 196 bagger, 196x its March 2009 low. No, that’s not a typo.
Investors continue to go where the growth is, namely large cap tech. Revenue growth among the tech leaders remained strong in the 4th quarter and investors today seem more than willing to pay a premium for it.
Stocks Bonds for the Long Run
Long-term bonds have outpaced US stocks over the past 20 years…
And that’s it for this week. Thanks for reading.
Have a great weekend everyone!
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