The defense sector has been one of the stable and strongest growing sectors since the 9/11 attacks. Firms in this sector were the biggest beneficiaries of rising defense budgets especially in the US. For example, Lockheed Martin (LMT) is up about 46% year-to-date. Despite excellent performance in the past, a recent journal article cautions investors …
In these modern times everyone is affected by all kinds of distractions. Sometimes it feels like you cannot get people to pay attention even for few minutes. The average attention span of an American for example is in seconds. Companies, politicians and others have recognized this and take advantage of it. People are distracted by …
Continue reading ‘A History of Avoiding Distractions: Infographic’ »
Inequality as measured by the Gini coefficients is the highest in emerging countries. Among developed countries, the US has the highest inequality which is not surprising. Inequality is also rising in the US due to a variety of reasons including tax cuts for the wealthy, lower tax rates on capital gains over labor income, etc. …
Manufacturing is the largest sector of the German economy. More specifically, the auto manufacturing industry is the largest in Germany. As a result, the German stock market tend to follow the auto industry. The following chart shows how the German stock market is highly correlated to the auto industry: Click to enlarge Cumulative total return …
Continue reading ‘On The Correlation between German Stock Market and Auto Stock’ »
Tech stocks are hot again this year. The top flying stocks are up by double digits percentage points year-to-date. The bull market in this sector continues for the past few years. Seemingly endless growth and innovation are driving investors to pay sky-high premiums for the top tech market darlings such as the FAANGs. Some of …
Continue reading ‘Tech Stocks: Is It Really Different This Time?’ »