Chinese Electric Car Maker NIO Has Soared 1,231% Year-to-Date

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Stocks of electric vehicle makers are red-hot on Wall Street this year. While Tesla(TSLA) is the most popular of them all, other lesser known companies are also riding the bandwagon. China-based NIO(NIO) is one example. NIO’s traded under $4.00 in the beginning of the year. Yesterday it closed at $53.51 for a growth of 1,231.09%. This rate of growth within a year is astonishing indeed.

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Source: Yahoo Finance

NIO’s current market capitalization is about $73.0 billion. The company reported just $629 million in revenue for the last quarter.

Inquiring minds are wondering how high is too high for NIO.

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Disclosure: No Positions

 

What Are National Oil Companies? : Chart

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National Oil Companies (NOCs) are owned fully or partially by the state. Unlike the major supermajors like Exxon Mobile(XOM), BP(BP), Total(TOT), etc. the NOCs are controlled by the state though they may publicly listed as well. Some of the large oil companies in the world such as  China Petroleum & Chemical Corp (SNP) and PetroChina (PTR) of China, Petrobras (PBR) of Brazil, Equinor (EQNR) of Norway are NOCs. The map below shows the NOCs by country:

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Source: The National Oil Company Database, Resource Governance

Disclosure: Long PBR

Number of Nurses by Country: Chart

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This post is a follow-up to a post from earlier this year where I discussed about the doctors per capita in OECD countries. As the vaccines for Covid-19 gets rolled out nurses will be one of the key workers in the health care sector involved in the administration of the vaccines. The following chart shows the number of nurses per 1,000 residents. Norway has the highest number of nurses on a per capita basis among OECD countries.

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Source: OECD

 

Effects on Returns for Missing Best Trading Days by Country Indices

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I written many times before on the importance of staying invested. Recently I wrote about the impact on returns for the DAX Index based on a study by Sutor Bank of Germany. The study also included effect on returns for missing out the best days on other country indices. For the S&P 500, if an investor missed the 17 best days in the 31 year period from 1988 to 2018 then the return was cut in half. For the FTSE 100 just missing the 5 days was enough to halve the return.

From the study:

Country comparison: In the UK, 5 missed days are enough to cut returns in half

The cross-border analysis of Sutor Bank has shown that it looks very similar with other stock exchanges in the world. The evaluation is on a euro basis; in local currency the results are similar. For the Swiss SMI, it was enough to have missed the best 17 days between 1988 and 2018 to halve its return. With the American S&P 500 it is also 17 days, with the MSCI World 12 days – with the Hang Seng index only 9 days, with the French CAC40 only 6 days, and with the British FTSE 100 even only the 5 best missed trading days, by half Forfeiting returns. Even more serious: With the FTSE 100, for example, you only had to have missed the best 14 trading days over a 31-year period to even generate a negative annual return. At the Swiss SMI, it took 47 days.

Table: Number of best missed trading days and effects on returns – by country indices (period: 31 years; 1988-2018; in euros)All data refer to euros; Currency effects have an impact on returns; no data for Japan / Nikkei, as the market here was negative overall; Observation period: 1.1.1988-31.12.2018

The key takeaway is investors should never try to time the market. Time in the market is more important than timing the market. Otherwise just missing a handful of days – 17 days to be exact in a long 31 year period is enough to lose half the returns (S&P 500).

Source: Anyone who missed the best 13 days in 31 years of the DAX lost half of the return – in Great Britain 5 days were enough, Sutton Bank

US Retirement Plan Accounts: Contribution Limits for 2021

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The contribution limits for 2021 for the various retirement plans has been released by the Internal Revenue Service(IRS). The contribution limits for Traditional IRA and Roth IRA stands at $6,000 per person (provided one is qualified to contribute). The catchup contribution limit for those aged 50 or higher is $1,000. For college savings, the Coverdell ESA contribution limit also stays at $2,000.

Every year the folks at Lord Abbett publish a simple and easy to use cheat sheet listing all the retirement plans and the latest contribution limits. This list is very useful for investors. The following table shows the contribution limits for 2021. As we head towards the end of this year, its wise to plan ahead for 2021.

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Source: Lord Abbett

Note: This post is applicable for US residents only

Download: Contribution Limits for 2021 for Retirement Plan Accounts (pdf version)