Equitable Investors

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.  Private equity deals are thumping through at a record rate, highlights Bloomberg, while angel funding rounds are inflating based on PitchBook data. Listed equity returns are mostly made by holding overnight rather than holding over the course of the trading day, based on US analysis from Bespoke and Equitable Investors' ASX small cap analysis. Scott Galloway looks at value destruction on the grandest scale. On the economic reflation front Rosenburg Research charts the US home improvement trend and the Economist charts the shift in sentiment. Most of these charts were featured in Equitable Investors' weekly Small Talk updates ...

  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.  With casino operator Crown Resorts is receiving the attention of a number of suitors and the latest, Star, has established that gaming mergers typically feature synergies equal to 12% of EBITDA. Dealogic show the corporate interest in Crown has contributed to a 459% increase in the value of announced M&A deals in Australasia for the first half of CY2021. Gavekal has the earnings yield on US equities remaining above the 20 year median spread on fixed income. Morgan Stanley sets out correlation between key assets. Bespoke breaks down the recent performance of the top 1,000 US stocks. Back in Australia, Equitable Inves...

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.  It is well established now that retail trading activity in Australia and the US has surged in the March quarter, as shown by the NY Times, but is there a pull-back underway as data from retail broker website activity sourced from SimilarWeb indicates? Hedge fund Archegos learned the hard way what many CFD punters know and the FT (via bespoke) has highlighted - if you keep leveraging up when you're winning, a pull-back in the underlying investments will hurt. Turning to crypto for a moment, Bianco Research highlighted that the market value of cryptocurrencies has pulled alongside the equity value of US banks. With "inflation...

  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...

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.  A new research paper found that when retail traders on Robinhood buy a stock, it tends to underperform over the next three to 20 days; looking at some of the craziness of the times we have surging margin debt (relative to GDP) via TheFelderReport.com; and the performance of the most shorted stocks on January 28 via Bespoke. Grant's Interest Rate Observer offers up a chuckle on the extent to which the Fed will go to provide liquidity. Robeco's valuation metrics and Goldman Sach's Risk Appetite Index are reflective of how markets continue to buy risk in this environment. Consistent with the risk appetite, small caps are expec...

Livewire Markets included some commentary from Equitable Investors in its IPO round-up - which you can find here - and we thought we would take he opportunity to flesh things out here. Discipline creeping in? Our footnote to the description of a buoyant 2020 for IPOs (as we set out for Livewire) was that the market appeared to take a more discerning approach in the last few weeks. Several IPOs slated for the ASX were cancelled and ready-made meals company YouFoodz got its listing away but then fell 25% on its first day.  We would like to think that there was more than just investor fatigue at work. A common structure to fund companies preparing to IPO has been to conduct a "pre-IPO" raising where investors commit capital that will be converted to shares at a discount to the IPO price. Quite often that discount is around the 20% mark. It was probably a healthy sign pre-Christmas that the market did not support a proposed IPO with convertible notes on issue that were to be co...

  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.  Citi strategist Matt King summarises the legacy of 2020 across divisions in politics and the economy then Bloomberg shows US treasury yields hitting 1% for the first time since March. Bespoke debunks the view that it is bad for US equities for Democrats to have full control of federal politics. Market frothiness is on display in Factset's chart of SPAC (Special Purpose Acquisition Company or “blank check”) IPOs. UK fund Fasanara Capital shows that monthly variations in markets have been expanding, while US quantitative fund AQR argues with one chart that the prospects for a standard balanced portfolio are low and the op...