Data Update 1 for 2021: A (Data) Look Back at a Most Forgettable Year (2020)!

I spent the first week of 2021 in the same way that I have spent the first week of every year since 1995, collecting data on publicly traded companies and analyzing how they navigated the cross currents of the prior year, both in operating and market value terms. I knew that this year would be more challenging than most other years, for two reasons. The first was that the shut down of the global economy, initiated by the spreading of COVID early last year, had significant effects on the operations of  companies in different sectors, and across the world. The second was that, starting mid-year in 2020, equity markets and the real economy moved in different directions, with the former rising on the expectations a post-virus future, and the latter languishing, as most of the world continued to operate with significant constraints. In this post, I will start with a rationalization of why I do this data analysis every year, follow up with a description (geographic and sector) of the overall universe of companies that are in my analysis, list out the variables that I estimate and report, and conclude with a short caveat about 2020 data.

Data: A Pragmatist View

We live in the age of data worship, where investors, analysts and businesses all seem to have bought into the idea that big data has answers for every question and that collecting the data (or paying for it) will create positive payoffs. I am a skeptic and I have (Read more...)