5 charts from the past week that tell an interesting story in markets and investing…
1. Oil Crashes
Crude Oil fell over 24% on Monday, the 2nd largest 1-day decline in history.
Energy stocks fell in tandem, with the largest 5-day decline for the Energy sector ever ($XLE -34.6%).
2. Remember Tilray?
It’s now down 98% from its peak.
3. Carnage in Stocks…
-Stunning declines in Airlines and Cruises as investors expect travel and vacations to be put on hold for a while.
-Uber down 50% from its IPO price last year. $UBER
-Boeing and Fedex down 65% from their peaks. $BA $FDX
-Even Biotech stocks (which one might think could benefit with a potential cure to this virus) were down 17% in 2 days this week, their largest 2-day decline ever.
4. Carnage in bonds…
-Investment Grade Corporates: -12% in 4 days, largest 4-day decline ever. $LQD
-Muni Bonds: -7.3% in 3 days, largest 3-day decline ever. $MUB
-TIPS: -7.2% over 4 days, largest 4-day decline ever. $TIP
-Total US Bond Market: -8.5% over 3 days, largest 3-day decline ever.
5. Balance Sheet Explosion
Fed balance sheet moved up to $4.31 trillion, highest level in 20 months, up $153 billion over the last 2 weeks and $552 billion over the last 6.5 months.
A new balance sheet high is expected shortly, with many trillions more to come.
6. The Question
When was the last time the entire world was talking about the same thing for this long?
— Charlie Bilello (@charliebilello) March 12, 2020
And that’s it for this week. Thanks for reading.
Have a great weekend everyone!
-Charlie
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Disclaimer: All information provided is for educational purposes only and does not constitute investment, legal or tax advice, or an offer to buy or sell any security. For our full disclosures, click here.
