Charts
Select Charts From The FDIC Quarterly Banking Profile
Some interesting charts from the FDIC Quarterly Banking Profile report are shown below:
1. Number of “Problem” Banks
Yesterday the FDIC shutdown Nevada Security Bank of Reno, Neveda making it the 83rd bank to fail this year. The unofficial problem banks list published by Calculated Risk has increased to 781. Despite talks of economic recovery problem banks continues to rise.
2. Capital Ratios of FDIC-insured institutions
The Tier 1 risk-based capital ratio is a bank’s core-equity capital to its total-risk weighted assets. It can be used to determine a bank’s ability to sustain future losses. This ratio has been steadily increasing for US banks since early 2009 as a result of the many bailouts.
Related definitions from the FDIC Site:
“Well Capitalized.” Total Risk-Based Capital Ratio equal to or greater than 10 percent, and Tier 1 Risk-Based Capital Ratio equal to or greater than 6 percent, and Tier 1 Leverage Capital Ratio equal to or greater than 5 percent.
“Adequately Capitalized.” Not Well Capitalized and Total Risk-Based Capital Ratio equal to or greater than 8 percent, and Tier 1 Risk-Based Capital Ratio equal to or greater than 4 percent, and Tier 1 Leverage Capital Ratio equal to or greater than 4 percent.
“Undercapitalized.” Neither Well Capitalized nor Adequately Capitalized.
3. Loan Composition
The majority of the loans held by institutions are real estate loans while credit card loans account for 10% of total outstanding loans.
Comparison of Dividend Yields Across Major Markets
The chart below shows the current dividend yields in some of the major equity markets:
Click to Enlarge
Source: FT Market Data
Among the developed markets, except Japan the U.S. has the lowest yield at 2.5% for the S&P 500. Spain is one of the worst performing markets in the first five months of this year. Due to this fall and other factors, the yield on the IBEX 35 at 6.2% is the highest among developed countries. New Zealand equities have traditionally paid high dividends. Hence the New Zealand has the second best yield at 5.1%. Compared to Brazil, Russia and China, India has the lowest yield.
Chart: U.S. Federal Budget/Deficit as a Percentage of GDP
Interesting chart showing the U.S. Federal Budget/Deficit as a percentage of GDP and how it relates to average deficit of Greece:
Source: pionline.com
Comparison of Dividend Yields Across 20 Country Indices
The chart below shows the dividend yield across twenty country indices.These countries represent the largest countries based on market capitalization as of 12/31/2009:
Click to Enlarge
Source: Skloff Financial Group
The dividend yield of U.S. stocks remained less than a paltry 2% since 2003. For the years shown, Australian stocks have consistently paid dividends in excess of 3%. Among the BRIC countries, Brazilian stocks have the highest dividend yields. Overall U.S. stocks pay lower dividends than Australian and European stocks. This is one reason for U.S. investors to diversify their portfolio with foreign stocks.
Related Post: Review: The Callan Periodic Table of Investment Returns 2009
Review: The Callan Periodic Table of Investment Returns 2009
Callan Associates has published The Callan Periodic Table of Investment Returns for 2009.
Chart
Click to Enlarge
Some of the key observations from this chart include:
- Global stocks rallied about 32% in 2009 while US S&P 500 climbed 26.5%
- Small caps outperformed large caps for the ninth year out of the past 11 years
- Fixed Income generated a 5.9% return
You can download the complete pdf version of “The Callan Periodic Table of Investment Returns (Key Indices: 1990-2009)” by clicking here.
A Lost Decade for U.S. Stocks
I came across two charts that show the dismal performance of U.S. equities in this decade. The first chart below is from the Numbers column in the latest issue of Bloomberg Businessweek. It shows the return of U.S. S&P 500 Index from Dec 31, 2009 thru Dec 14, 2009. The S&P 500 lost 23% in this period. During the same period market indices in developed countries like France, Finland, etc. showed relatively better performance. The main stock market indices in the Netherlands, Japan and Greece performed worse than the S&P 500.
It is interesting to note that while the S&P lost 23%, the Brazilian Boverspa Index gained an astonishing 318% during the same time.This is one reason why US investors should look beyond the US for better returns.
Source: Bloomberg BusinessWeek
The second chart is from a Wall Street Journal December 20th article titled “Investors Hope the ’10s Beat the ‘00“. From the article:
“The U.S. stock market is wrapping up what is likely to be its worst decade ever.
In nearly 200 years of recorded stock-market history, no calendar decade has seen such a dismal performance as the 2000s.
Investors would have been better off investing in pretty much anything else, from bonds to gold or even just stuffing money under a mattress. Since the end of 1999, stocks traded on the New York Stock Exchange have lost an average of 0.5% a year thanks to the twin bear markets this decade.
The period has provided a lesson for ordinary Americans who used stocks as their primary way of saving for retirement.
Many investors were lured to the stock market by the bull market that began in the early 1980s and gained force through the 1990s. But coming out of the 1990s—when a 17.6% average annual gain made it the second-best decade in history behind the 1950s—stocks simply had gotten too expensive. Companies also pared dividends, cutting into investor returns. And in a time of financial panic like 2008, stocks were a terrible place to invest.
With two weeks to go in 2009, the declines since the end of 1999 make the last 10 years the worst calendar decade for stocks going back to the 1820s, when reliable stock market records begin, according to data compiled by Yale University finance professor William Goetzmann. He estimates it would take a 3.6% rise between now and year end for the decade to come in better than the 0.2% decline suffered by stocks during the Depression years of the 1930s.
The past decade also well underperformed other decades with major financial panics, such as in 1907 and 1893.
“The last 10 years have been a nightmare, really poor,” for U.S. stocks, said Michele Gambera, chief economist at Ibbotson Associates.”
Chart - U.S. Stocks’ Cumulative Returns by Decade
“This decade is on pace to be the worst period ever for owning stocks. On the right are the annual returns, by year and decade, for a broad measure of stock-ownership. Stock returns were even better during the Civil War and World War I than from 2000 to 2009.”
Source: WSJ
