Ten Thousand Words - November 2018

Apparently, Confucius didn’t say “One Picture Worth Ten Thousand Words” after all. It was an advertisement in a 1920s trade journal for the use of images in advertisements on the sides of streetcars. Even without the credibility of Confucius behind it, we think this saying has merit. Each month we share a few charts or images we consider noteworthy.

This month, the stock price of listed hedge fund giant Och-Ziff shows that buying things just because they have plunged in price doesn't mean they will go up again; high-flying ASX listing with P/E multiples greater than 26x were the most heavily sold in October; while The Reformed Broker highlighted just how significant changes in P/E multiples are to returns; historic data shows there's no reason, based on seasonality, to expect a bounce in ASX small industrials in November; Pimco sets out how correlated with equities different debt instruments are;  and Stratfor charts out how the top 15 cities hold ~11% of the world's wealth.


Och-Ziff, the largest publicly traded hedge fund manager, peaked on its very first day of trading back in November 2007. It has since declined 92%.


Source: @charliebilello




October share price performance on the ASX sorted by Price-to-Earnings (PE) multiples (using earnings from the last 12 months) at the beginning of the month

Source: Equitable Investors, Sentieo



Contracting P/E multiples have undermined earnings growth in the US in 2018



Source: The Reformed Broker, WSJ, Bloomberg




S&P/ASX Small Industrials weekly returns over past five years - the number that were negative and average returns
















Note: data through to late January 2018

Source: Iress, Equitable Investors



Correlation to equity markets of different sectors of the credit market














Source: Pimco



Mapping the World's Wealthiest Cities

The Top 15 Cities Globally Hold $24 Trillion in Wealth


Source: Stratfor


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