5 charts from the past week that tell an interesting story in markets and investing…
1) The Big 4
On March 9, 2009, the combined market cap of Apple, Microsoft, Google (Alphabet), and Amazon was $326 billion.
Their combined market cap today: $5.77 trillion, up more than 17x since 3/9/09.
2) Dividends … Down
S&P 500 dividends per share declined 6% in the 2nd quarter from their all-time high in Q1.
During the last 3 recessions, these were the peak-to-trough declines in dividends…
- 1990-91 recession: -13%
- 2001 recession: -15%
- 2007-09 recession: -30%
3) Tesla Top?
Another day, another $100 point milestone for Tesla. This week it crossed above $1,300, $1,400 and $1,500 for the first time, only a month after hitting $1,000.
One year ago, Tesla had a lower market cap than both GM and Ford. At $286 billion today, it now has a higher market cap than GM, Ford, Fiat Chrysler, Daimler, BMW, Ferrari, Honda, and Hyundai … Combined.
When will the parabolic run end? Nobody knows. Calling a bubble top without the benefit of hindsight is a difficult game (see here for recent post).
4) Covid Continues
We saw record highs again this week in new US COVID-19 cases, with the percentage of positive tests and hospitalizations moving back to May levels.
Deaths, which had been trending lower for two months, rose 10% versus the prior week. The 3 largest US states (California, Texas, and Florida) all saw new single day highs in deaths.
The South and West continue to be the regions of most concern…
States w/ highest % positive COVID-19 tests (7-day avg)…
— Charlie Bilello (@charliebilello) July 8, 2020
1) Arizona: 26.8%.
2) Florida: 18.9%.
3) South Carolina: 16.9%.
4) Texas: 14.3%
5) Alabama: 14.2%
6) Nevada: 13.7%.
7) Georgia: 13.2%.
8) Mississippi: 12.5%.
5) Mortgage Rates at New Lows
We saw new all-time lows this week in both the 30-year and 15-year US mortgage rate (3.03% and 2.51%).
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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.
