5 charts from the past week that tell an interesting story in markets and investing…
1. From Nikola to …
The mania is back, this time in a company called Nikola ($NKLA), named after famous inventor Nikola Tesla.
Hyped as a potential competitor to Tesla, the hybrid truck design company’s stock has skyrocketed. On Tuesday, its market cap moved above $33 billion, more than that of Ford.
At $33 billion, Nikola’s market cap is now higher than Ford’s ($30 billion).
— Charlie Bilello (@charliebilello) June 9, 2020
Nikola has $0 revenue vs. $150 billion for Ford over the last year.$NKLA $F https://t.co/xRLp1VDzbi
Why is that remarkable? It has $0 revenue.
2. … Tesla
Speaking of manias, Tesla hit an all-time high this week, and is up over 120% year-to-date. In mid-March, it was down over 10% on the year.
Tesla crossed above $1,000 for the first time on Wednesday.
At $189 billion, Tesla has a higher market cap than GM, Ford, Fiat Chrysler, Daimler, and Ferrari … combined ($178 billion).
3. Volatility Makes a Comeback
The Dow fell 6.9% on Thursday, the 27th largest 1-day decline in history (data back to 1896 when the Dow started). 6 out of the top 50 declines have occurred in 2020. For comparison, 2008 only had 5 of the top 50.
The 48% spike in the Volatility Index ($VIX) was the 7th largest ever (note: $VIX started in 1990).
3. $26 trillion and Counting…
U.S. National Debt moved above $26 trillion for the first time, only 2 months after hitting $24 trillion (click here for recent blog post on this).
Debt as a % of GDP has never been higher…
US National Debt as % of GDP…
— Charlie Bilello (@charliebilello) June 10, 2020
1980: 31%
1985: 40%
1990: 52%
1995: 65%
2000: 58%
2005: 61%
2010: 87%
2015: 101%
Today: 121% pic.twitter.com/L4z6yyFtMh
5. Leaving on a Jet Plane…
Investors have been piling into the Airlines ETF ($JETS), betting on a recovery for the sector as the economy reopens. Assets in $JETS rose from $34 million in March to $1.67 billion.
What if there’s a “second wave” of COVID-19 and a second lockdown? From a poll I conducted this week, it may be more difficult to get broad compliance.
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.
