10k Words - March 2021

 Apparently, Confucius didn’t say “One Picture is 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. 

Momentum was the winning factor for equities in 2020 but since the GFC has actually been outdone in the US by the Income, Size and Low Volatility factors, Credit Suisse shows. Bank of America shows us which assets are most correlated with inflation. The concentration of the S&P 500 is put on show. Canaccord looks at what growth rates might be required based on the current pricing of a basket of ASX tech/e-commerce stocks, while the Wall Street Journal reviews US gaming sector sales multiples in the wake of the Roblox listing this week. Australia's leading taxi payments business A2B (Cabcharge) maps out weekly swings in demand since COVID-19 began to impact in March 2020.  Finally, engineering firm Monadelphous updates us on the mining services sector outlook in Australia, with constant capex and increasing maintenance spend.

Equity factor premiums (%) in the USA and UK, by year 2008–2020

Source: Credit Suisse

Correlation of real and financial assets with inflation since 1950
Source: Bank of America

S&P 500 Index weights
Source: S&P 

Tech/E-Commerce - Implied 5yr Revenue CAGR (vs current run-rate revenue)

Source: Canaccord 

Gaming businesses - equity value relative to expected sales
Source: WSJ

A2B's taxi fares processed week-on-week

Source: A2B

Mining Services - Australian industry outlook

Source: Monadelphous

Popular posts from this blog

Feel the Cash Burn as Profit Season Closes (or "In memory of Pocketmail")

New commentary up on livewire: An overlooked small cap agri stock

We reckon equity is a key incentive


Nothing in this blog constitutes investment advice - or advice in any other field. Neither the information, commentary or any opinion contained in this blog constitutes a solicitation or offer by Equitable Investors Pty Ltd (Equitable Investors) or its affiliates to buy or sell any securities or other financial instruments. Nor shall any such security be offered or sold to any person in any jurisdiction in which such offer, solicitation, purchase, or sale would be unlawful under the securities laws of such jurisdiction.

The content of this blog should not be relied upon in making investment decisions.Any decisions based on information contained on this blog are the sole responsibility of the visitor. In exchange for using this blog, the visitor agree to indemnify Equitable Investors and hold Equitable Investors, its officers, directors, employees, affiliates, agents, licensors and suppliers harmless against any and all claims, losses, liability, costs and expenses (including but not limited to legal fees) arising from your use of this blog, from your violation of these Terms or from any decisions that the visitor makes based on such information.

This blog is for information purposes only and is not intended to be relied upon as a forecast, research or investment advice. The information on this blog does not constitute a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Although this material is based upon information that Equitable Investors considers reliable and endeavours to keep current, Equitable Investors does not assure that this material is accurate, current or complete, and it should not be relied upon as such. Any opinions expressed on this blog may change as subsequent conditions vary.

Equitable Investors does not warrant, either expressly or implied, the accuracy or completeness of the information, text, graphics, links or other items contained on this blog and does not warrant that the functions contained in this blog will be uninterrupted or error-free, that defects will be corrected, or that the blog will be free of viruses or other harmful components.Equitable Investors expressly disclaims all liability for errors and omissions in the materials on this blog and for the use or interpretation by others of information contained on the blog.