U.S. stocks have soared since the Global Financial Crisis (GFC) of 2008-09. The benchmark S&P 500 has more than doubled from the lows reached during the dark days of 2009 when it seemed like world was coming to end. However none of the markets in developed Europe have had a strong recovery since the GFC like …
Continue reading ‘S&P 500 vs. FTSE 100 Returns Since Global Financial Crisis: Chart’ »
The average stock holding period for developed markets has been on the decline for many years now. For example, by one estimate the average holding for stocks listed on the NYSE is just 7 months or less than 2 years by another estimate. In emerging markets(EM) also, the average holding periods are very low. EM investors …
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The US equity market leads the world in terms of market capitalization. At the end of 2016, listed US firms accounted for more than half of the global stock market value as shown in the graphic below. At the end of 1899 the US accounted for only 15% of global stock market value. Click to …
Continue reading ‘Comparing World Equity Market Sizes 1899 vs. 2016’ »
The US auto-parts industry is experiencing severe slowdown in recent months. Major retailers such as Autozone, Inc(AZO), O’Reilly Automotive(ORLY) and Advance Auto Parts(AAP) have seen seen their stocks decimated. These companies announced poor quarterly earnings and mentioned a variety of factors for their dismal performance. Some of these include high sales of new vehicles, warmer weather, oil prices, etc. …
Continue reading ‘Stocks of US Auto-Parts Retailers Have Crashed This Year’ »
Defining a bubble in equity markets is tricky. However according to Jeffrey Kleintop at Schwab a bubble is defined as a rise of 1,000% or 10 times over 10 years. The chart below shows four bubbles from the past. While today some tech stocks are all the rage and the NASDAQ has reached record levels, one of …
Continue reading ‘Four Classic Bubbles of the Past: Chart’ »