10K Words - April 2022

Apparently, Confucius did not 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.

Online sales volumes have retreated in absolute numbers and as a share of total sales as the charts from the Australian Bureau of Statistics and the US Census Bureau show. US government bonds are on track to deliver their worst annual loss, Compound Capital Advisors highlights. Bank of America links the preceeding surge in central bank liquidity with the value of "Big Tech" stocks. A correlation between inflation worries and the relative valuation of small caps is charted by BCA Research. Quantitative Value co-author Tobias Carlisle shows that "unexcellent" stocks have outperformed "excellent" stocks over time. We return to BofA to look at how hedge funds and fund managers have become reluctant to take on risk. And, finally, "The Plateau of Latent Potential" is a chart from the book Atomic Habits that spoke to us.

Online retail sales in Australia (monthly to February 2022)
Source: ABS

Online retail sales in the US (quarterly) as a % of total sales

Source: US Census Bureau

Bloomberg Barclays Aggregate Bond Index, Total Return (1977-2022)

Source: Compound, @CharlieBilello

Central bank liquidity and the market cap of “Big Tech”
Source: Bank of America

Business Inflation Worries & US Small Cap Valuation Indicator

Source: BCA, @Scutty

Comparison of "Unexcellent" and "Excellent" Stock Portfolios

Source: @Greenbackd

Hedge Fund Equity Exposure
Source: Bank of America

Net % of Fund Managers taking higher than normal risk

Source: Bank of America

The Plateau of Latent Potential

Source: @JamesClear, Atomic Habits via @SvnCapital

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