Category: stocks

Visualizing Gender Diversity in Corporate America


This post is by Carmen Ang from Visual Capitalist


There’s been a massive push to increase diversity and inclusion in the workplace.

However, it appears corporate America still has a ways to go, particularly when it comes to diverse representation in corporate leadership roles. In 2021, only 8.2% of Fortune 500 CEOs were female. Of those females, 85% of them were white.

This graphic by Zainab Ayodimeji highlights the current state of diversity in corporate America, reminding us that there are still significant gender and racial gaps.

Graphic showing the breakdown of female CEOs on the Fortune 500 since 1970

Five Decades of Fortune 500 CEOs

Since 1955, Fortune Magazine has released its annual Fortune 500 list that ranks the 500 largest U.S. companies, ranked by total revenue earned each fiscal year.

For the first 17 years of its publication, there were no female CEOs on the Fortune 500. Then in 1972, Katharine Graham became CEO of the Washington Post, making her the first-ever female CEO of a Fortune 500 company.

Following Graham, a few other women joined the ranks, such as Marion Sandler, co-CEO of Golden West Financial Corporation, and Linda Wachner, CEO of Warnaco Group. But apart from those few outliers, Fortune 500 CEOs remained almost exclusively male for the next few decades.

At the turn of the millennium, things started to change. Women-led companies started to appear more frequently on the Fortune 500. Here’s a breakdown that shows the number of women CEOs on the list, from 1999 to 2021:

YearFortune 500 # of Women CEOs% of Total
199920.4%
200020.4%
(Read more...)

BlackRock MyMap: Designed for First-Time Investors



Whether you’re sending your kids to university or preparing for retirement, meeting future financial needs can be a mighty challenge.

This is due to the many economic issues that eat away at your savings. Inflation, for example, is increasing the cost of gas, groceries, and other daily necessities. The COVID-19 pandemic, on the other hand, has thrown a wrench into many people’s personal finances.

Starting Your Investment Journey

This infographic from BlackRock introduces their MyMap range of multi-asset investment funds, and describes the benefits to first-time investors.

BlackRock MyMap Funds

Today’s Savings Struggles

The above infographic highlighted three savings struggles that make it difficult to meet your future financial goals.

The first is inflation, which refers to the increase in prices of goods and services over time. To understand how inflation can erode the value of your savings, consider this example:

  • £100 worth of goods in 2000 would cost £179 in 2021
  • £100 worth of goods in 1980 would cost £456 in 2021

In other words, inflation reduces the purchasing power of your savings over time.

The second savings struggle is increasing longevity, also known as longer life expectancies. Living a longer life is generally a good thing, but it does increase the risk of outliving your savings. Coming up with a solid retirement plan is becoming more important than ever.

A third struggle is the COVID-19 pandemic, which appears to be having a long-term impact on UK households. In a December 2021 survey, UK families were asked to (Read more...)

The Best Months for Stock Market Gains


This post is by Marcus Lu from Visual Capitalist


best months for stock market gains

The Best Months for Stock Market Gains

Many investors believe that equity markets perform better during certain times of the year.

Is there any truth to these claims, or is it superstitious nonsense? This infographic uses data gathered by Schroders, a British asset management firm, to investigate.

What the Data Says

This analysis is based on 31 years of performance across four major stock indexes:

  • FTSE 100: An index of the top 100 companies on the London Stock Exchange (LSE)
  • MSCI World: An index of over 1,000 large and mid-cap companies within developed markets
  • S&P 500: An index of the 500 largest companies that trade on U.S. stock exchanges
  • Eurostoxx 50: An index of the top 50 blue-chip stocks within the Eurozone region

The percentages in the following table represent the historical frequency of these indexes rising in a given month, between the years 1987 and 2018. Months are ordered from best to worst, in descending order.

RankMonth of Year Frequency of Growth (%)Difference from Mean (p.p.)
#1December79.0%+19.9
#2April74.3%+15.2
#3October68.6%+9.5
#4July61.7%+2.6
#5May58.6%-0.5
#6November58.4%-0.7
#7January57.8%-1.3
#8February57.0%-2.1
#9March56.3%-2.8
#10September51.6%-7.5
#11August49.3%-9.8
#12June36.7%-22.4
Average59.1%n/a

There are some outliers in this dataset that we’ll focus on below.

The Strong Months

In terms of frequency of growth, December has historically (Read more...)

How This Ends



Back in February of last year, I wrote a blog post with the same title and said this about the asset price bubble we were living in and investing in over the last few years:

The big question is how does this end?

I believe it ends when the Covid 19 pandemic is over and the global economy recovers. Those two things won’t necessarily happen at the same time. There is a wide range of recovery scenarios and nobody really knows how long it will take the global economy to recover from the pandemic.

But at some point, economies will recover, central banks will tighten the money supply, and interest rates will rise. We may see price inflation of consumer goods and labor too, although that is less clear.

When economies recover and interest rates rise, the air will come out of the asset price bubbles that have built up and the go go markets will hit the brakes.

Well now the markets have hit the brakes and the new question is how that ends.

I have been using the early 80s as a bit of a mental model. The late 70s saw oil prices rise and stagflation emerge and while that is not exactly what has happened with COVID and the war in Ukraine, there are some similarities.

In the early 80s, the G7 economies tightened the money supply, raising interest rates dramatically, in an effort to bring inflation under control. You can see the effect in this image:

(Read more...)

Why Investors Tuned Out Netflix


This post is by Marcus Lu from Visual Capitalist


Netflix shares crash

Why Investors Tuned Out Netflix

Netflix shares have enjoyed an incredible run over the past decade. Subscriber growth seemed limitless, profitability was improving, and the pandemic gave us a compelling case for watching TV at home.

Things took a drastic turn on April 19, 2022, when Netflix announced its Q1 results. Rather than gaining subscribers as forecasted, the company lost 200,000. This was the first decline in over a decade, and investors rushed to pull their money out.

So, is there a buying opportunity now that Netflix shares are trading at multi-year lows? To help you decide, we’ve provided further context around this historic crash.

Netflix Shares Fall Flat

Over the span of a few months, Netflix shares have erased roughly four years worth of gains. Not all of these losses are due to the drop in subscribers, however.

Prior to the Q1 earnings announcement, Netflix had lost most of its pandemic-related gains. This was primarily due to rising interest rates and people spending less time at home. Still, analysts expected Netflix to add 2.7 million subscribers.

After announcing it had lost 200,000 subscribers instead, the stock quickly fell below $200 (the first time since late 2017). YTD performance (as of April 29, 2022) is an abysmal -67%.

What’s to Blame?

Netflix pointed to three culprits for its loss in subscribers:

  • The suspension of its services in Russia
  • Increasing competition
  • Account sharing

Let’s focus on the latter two, starting with competition. The following table compares the number of (Read more...)

Catching the Growth of the Cannabis Industry



The following content is sponsored by eToro

Cannabis future infographic

Catching the Growth of the Cannabis Industry

The global stance on cannabis is changing rapidly.

With a wave of medical and recreational legalization occurring, there are now 70 countries with some form of legalization. As billions of investment dollars pour in, the cannabis industry finds itself entering a brand new chapter.

This infographic from eToro provides key information for investors on how the global cannabis market is making significant strides forward.

The World’s Legal Cannabis Markets

In just a few short years since legalization momentum kicked off, societal views on cannabis have changed tremendously. Examples of this include:

  • Dispensaries being deemed essential businesses during the pandemic.
  • Uber announcing its intention to incorporate cannabis deliveries.
  • Malta becoming the first country to legalize cannabis in Europe for recreational use.

This shifting dynamic is part of why the global cannabis industry now generates over $20 billion in legal recreational sales on an annual basis.

The title for the world’s largest cannabis market belongs to the U.S.—generating more than $16 billion in sales in 2020. However, their regulatory landscape is also one of the trickiest to navigate, as federal legalization has yet to occur despite over 30 states having legalized cannabis in some form.

While this unique situation leaves a lot of potential money off the table, it also provides lots of potential upside for the industry should legalization trends persist. In 2022, Mississippi, Oklahoma, and Delaware are considered likely to legalize, which would take the small (Read more...)

The World’s Largest Real Estate Investment Trusts (REITs)


This post is by Marcus Lu from Visual Capitalist


World's largest real estate investment trusts

The World’s Largest Real Estate Investment Trusts (REITs)

Real estate is widely regarded as an attractive asset class for investors.

This is because it offers several benefits like diversification (due to less correlation with stocks), monthly income, and protection from inflation. The latter is known as “inflation hedging”, and stems from real estate’s tendency to appreciate during periods of rising prices.

Affordability, of course, is a major barrier to investing in most real estate. Property markets around the world have reached bubble territory, making it incredibly difficult for people to get their foot in the door.

Thankfully, there are easier ways of gaining exposure. One of these is purchasing shares in a real estate investment trust (REIT), a type of company that owns and operates income-producing real estate, and is most often publicly-traded.

What Qualifies as REIT?

To qualify as a REIT in the U.S., a company must meet several criteria:

  • Invest at least 75% of assets in real estate, cash , or U.S. Treasuries
  • Derive at least 75% of gross income from rents, interest on mortgages, or real estate sales
  • Pay at least 90% of taxable income in the form of shareholder dividends
  • Be a taxable corporation
  • Be managed by a board of directors or trustees
  • Have at least 100 shareholders after one year of operations
  • Have no more than half its shares held by five or fewer people

Investing in a REIT is similar to purchasing shares of any other publicly-traded company. There are also exchange-traded (Read more...)

Putting EV Valuations Into Perspective


This post is by Marcus Lu from Visual Capitalist


EV Valuations

Putting EV Valuations Into Perspective

The global push for lower emissions has created a mania around pure-electric automakers. While Tesla leads the charge, institutional investors have also piled into many of its younger rivals.

For example, in 2019, Saudi Arabia’s sovereign wealth fund invested $1.3 billion into Lucid Motors. One year later, it was revealed that Amazon had a 20% stake (worth $3.8B) in Rivian.

To see how quickly EV valuations have ballooned, we’ve visualized the historical market capitalizations (market caps) of 10 prominent automakers.

Legacy vs Pure-Electric

The legacy group includes five top traditional automakers, while the EV group includes the five most valuable pure-electric automakers that are listed on an American exchange.

The following table lists the market caps of these companies at various dates. While XPeng and NIO are listed on the New York Stock Exchange, they do not currently sell cars in the U.S.

AutomakerType20102015202102/22/2022
?? TeslaEV$3B$31B$1,061B$849B
?? ToyotaLegacy$124B$191B$255B$256B
?? Volkswagen GroupLegacy$59B$79B$129B$128B
?? Mercedes-BenzLegacy$61B$94B$83B$89B
?? FordLegacy$63B$57B$83B$69B
?? General MotorsLegacy$55B$51B$85B$68B
?? RivianEVN/AN/A$93B$55B
?? LucidEVN/AN/A$63B$42B
?? NIOEVN/AN/A$50B$35B
?? XpengEVN/AN/A$41B$30B

Source: Companies Market Cap

At the end of 2021, Tesla and its four EV rivals were worth a combined $1.3 trillion. This was more than double of the legacy group, which (Read more...)

Putting EV Valuations Into Perspective


This post is by Marcus Lu from Visual Capitalist


EV Valuations

Putting EV Valuations Into Perspective

The global push for lower emissions has created a mania around pure-electric automakers. While Tesla leads the charge, institutional investors have also piled into many of its younger rivals.

For example, in 2019, Saudi Arabia’s sovereign wealth fund invested $1.3 billion into Lucid Motors. One year later, it was revealed that Amazon had a 20% stake (worth $3.8B) in Rivian.

To see how quickly EV valuations have ballooned, we’ve visualized the historical market capitalizations (market caps) of 10 prominent automakers.

Legacy vs Pure-Electric

The legacy group includes five top traditional automakers, while the EV group includes the five most valuable pure-electric automakers that are listed on an American exchange.

The following table lists the market caps of these companies at various dates. While XPeng and NIO are listed on the New York Stock Exchange, they do not currently sell cars in the U.S.

AutomakerType20102015202102/22/2022
?? TeslaEV$3B$31B$1,061B$849B
?? ToyotaLegacy$124B$191B$255B$256B
?? Volkswagen GroupLegacy$59B$79B$129B$128B
?? Mercedes-BenzLegacy$61B$94B$83B$89B
?? FordLegacy$63B$57B$83B$69B
?? General MotorsLegacy$55B$51B$85B$68B
?? RivianEVN/AN/A$93B$55B
?? LucidEVN/AN/A$63B$42B
?? NIOEVN/AN/A$50B$35B
?? XpengEVN/AN/A$41B$30B

Source: Companies Market Cap

At the end of 2021, Tesla and its four EV rivals were worth a combined $1.3 trillion. This was more than double of the legacy group, which (Read more...)

Seeing Red: Is the Heydey of Pandemic Stocks Over?


This post is by Jenna Ross from Visual Capitalist


pandemic stocks

The Briefing

  • Global equities are in a downward spiral, and experienced their worst week in more than a year.
  • Worries about slowing post-COVID demand and rising rates fueled the selloff.
  • Pandemic stocks were some of the hardest hit, with Shopify and Netflix dropping 35.3% and 33.5% respectively.

Seeing Red: Is the Heydey of Pandemic Stocks Over?

The stock market, and the stocks that flourished during the COVID-19 pandemic in particular, are off to a rough start in 2022. If you’ve been watching your investment accounts, chances are you’ve been seeing a lot of red. Shaken by the uncertainty of a pandemic recovery and future interest rate hikes, investors have been selling off their stocks.

This market selloff—which occurs when investors sell a large volume of securities in a short period of time, leading to a rapid decline in price—has investors concerned. In fact, search interest for the term “selloff” recently reached peak interest of 100.

2022 market selloff

Which stocks were the hardest hit, and how much are their prices down so far this year?

The Lackluster Returns of Pandemic Stocks

Pandemic stocks and tech-centric companies have suffered the most. Here’s a closer look at the year-to-date price returns for select stocks.

CompanyYear-to-Date Price Return
Shopify-35.3%
Roblox-30.2%
Block-28.0%
Moderna-31.9%
Zoom-19.9%
Netflix-33.5%
Snapchat-31.1%
Peloton-23.1%
Coinbase-23.5%
DocuSign-26.0%
Amazon-16.3%
Robinhood-29.6%

Price returns are in U.S. dollars based on data from January 3, 2022 to January 21, 2022.

Netflix fueled the selloff after it (Read more...)