Random Facts For The New Year
January 2, 2014 Portfolio Strategy
Here are 14 random facts to start the New Year, cherry-picked from our friends on the street. Keep an eye out for our own investment outlook later this month.
- The S&P 500 added $3.7 trillion of market cap in 2013. The market did not go negative at any point this year – something that’s only happened ten times since 1928.
- In the past five decades, only 1995 exceeded 2013’s Sharpe Ratio. This is not sustainable. We wouldn’t be surprised to see the turn of the calendar represent an inflection point.
- Chinese stocks are up about 50% from the 1992 highs. US stocks are up about 380% – a tad bit more. Over the same time period, Chinese GDP has grown 17 fold, while US GDP has grown 1.7 fold. Still think there is a tight correlation between economic growth and equity returns?
- US companies will earn close to $2 trillion this year, up 250% since 2000. The total return of the S&P 500 since the Mar ’09 lows is now over 200%!! Care to wager which way from here?
- Twenty years ago, only 200 S&P companies repurchased stock. Today, that number is 425. Keep up the good work Carl, Bill, et al.
- Ex-financials, US corporate cash balances are up 70% since 2007. On a related note, global private equity dry powder: $404 billion. Now read point five again.
- Approximately $1.3 trillion flowed into bond funds with ten year notes yielding less than three percent. Wonder how much will flow into them with yields over three percent?
- Texas is now producing more oil than we import from the Middle East. Peak what?
- Meanwhile, the average value of farm real estate in the US has nearly doubled since 2005. And this does not even consider increased demand from new crops in Colorado!
- Warren Buffett’s overall gain from 1964 – 2012: 586,817%. S&P: 7,433%. Ever wonder why more investors don’t follow this example? Countless talk the talk. Few walk the walk.
- EBAY sells nearly 10,000 cars a week on their mobile app. And over 400 million cups of coffee are consumed each day in the US. Allegedly, a number of these caffeinated coffee consumers are car shopping at Starbucks.
- Americans work 8.5 more hours per week than they did in 1979. Hard work never hurt anyone, yet I can’t help but wonder how the growing long-term unemployed enter into this calculation.
- Over 50% of start-up companies in Silicon Valley were founded by immigrants. Simply incredible. Despite relentless negative sentiment towards the US economy, the American Dream remains.
- Most all-time playoff wins by an NFL quarterback: Tom Brady (17). Most all-time playoff losses by an NFL quarterback: Peyton Manning (11).
Happy New Year!