5 charts from the past week that tell an interesting story in markets and investing…
1. $7 Trillion and Counting
The Fed’s balance sheet moved above $7 trillion this week for the first time, with $2.9 trillion in asset purchased in just the last 3 months.
In 2008, the Fed increased its assets by over 151%. A similar % increase this year would bring the Fed’s balance sheet above $10 trillion.
2. Growth > Value
The ratio of Growth stocks to Value stocks is at its highest level since October 2000.
3. Big Tech: 2008 vs. 2020
Nasdaq 100 is on pace for its 12th consecutive year of gains…
Nasdaq 100, total returns…
— Charlie Bilello (@charliebilello) May 20, 2020
2009: +55%
2010: +20%
2011: +4%
2012: +18%
2013: +37%
2014: +19%
2015: +10%
2016: +7%
2017: +33%
2018: +0.04%
2019: +39%
2020 YTD: +9%$NDX
4. Earnings Collapse
With 90% of companies reported, S&P 500 Q1 GAAP earnings are down 64% year-over-year.
This will be the lowest quarterly earnings for the S&P 500 since Q1 2009.
S&P 500 operating profit margins moved down to 6.0% in the 1st quarter, lowest since Q1 2009.
The number of COVID-19 Hospitalizations in New York has declined 38 days in a row. 🙏
And that’s it for this week. Thanks for reading.
Have a great long 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.
