Even The Best Stocks Have Big Declines Over The Years

Posted by on

The S&P 500 is down about 17% year-to-date. Talks o a bear market and a looming recession are becoming increasingly prevalent in the media in recent weeks. With that said, it is important to remember that even the best performing stocks of all time can and will fall. Sometimes the declines will be dramatic with losses of 50% or even 70% or more.

Tech giant Apple(AAPL) created $1.50 Trillion of shareholder value from 2010 to 2019 according to one study:

Click to enlarge

But that did not stop Apple from falling heavily a few times over the years. For instance, since its IPO in 1980 Apple stock has plunged by more than 70% three different times as shown in the chart below:

In 2012, Apple stock shed 40% in just 9 months.

But overall shareholders have earned a compounded annual average return of over 22% since IPO.

Another example of such stock is Amazon (AMZN). It crashed by over 91% during the dot com collapse.

Source: Drawdowns: Even ‘God’s portfolio’ can’t avoid them by Chris Demasi at at Montaka Global Investments

Disclosure: No positions

Canadian Bank Stocks’ Return Year-to-Date: Chart

Posted by on

Canadian banks stocks also have not escaped the carnage in the markets so far this year. The declines have not been severe. Most have fallen under 10% with the exception of Bank of Nova Scotia(BNS) which is off by over 11%. Unlike its peers, ScotiaBank has high exposure to emerging markets especially in Latin America. So investors are worried more about its future earnings as rising interest rates, geopolitical risks and other factors are worse for emerging markets than developed markets.

Click to enlarge

Source: Yahoo Finance

Related Stocks:

  • Bank of Nova Scotia (BNS)
  • Bank of Montreal (BMO)
  • Canadian Imperial Bank of Commerce (CM)
  • Royal Bank of Canada (RY)
  • Toronto-Dominion Bank (TD)

Disclosure: Long all 5 stocks

Countries Supporting Ukraine With Weapons: Map

Posted by on

In the current Ukraine-Russia war, some 30 Western countries are sending weapons to Ukraine so that Ukraine can use those against Russia and defend itself. The lone Asian country that is also participating in this coalition is Japan. In addition, the global south is participating in this war by supporting Ukraine with arms as the map below shows. Major emerging countries such as China, India, Brazil and a host of others are not supporting either of the two parties to the war militarily.

Click to enlarge

Source: The Western weapons fueling the Ukraine war, Asia Times

Though it is a proxy war for now, there is a huge risk should Russia ever decide to retaliate either directly or indirectly against any of the countries supporting Ukraine militarily.

Minerals and Metals in Your Smartphone: Infographic

Posted by on

More than 40 metals and rare earths are used in the manufacture of a smart phone. The following infographic shows some of those that are present in a smart phone:

Click to enlarge

Source: Canadian Mining

The following graphics from U.S. Geological Survey shows more details on the metals including where they are mined in the world:

Click to enlarge

Source: USGS

Related:

The History of Metals: Infographic

Posted by on

I came across the below excellent infographic on the history of metals. The discovery and use of metals is as old as the human civilization. For instance, gold was used to make jewelry as early as 6,000 BC. Similarly other metals such as copper, silver, iron, etc. were already in use during the ancient times.

Click to enlarge

 

Source: Makin Metals

Related ETFs:

  • SPDR Gold Trust (GLD)
  • United States Copper Index Fund (CPER)

Disclosure: No positions