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



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