Staying Invested
Source: Brian Feroldi
How to not lose money in the stock market? Answer: keep a long-term time horizon
Source: BofA
The Federal Reserve lent out roughly $200B in overnight cash on Wednesday through its standing repo facility
This is the highest amount since the onset of covid. What's going on? Is another repo crisis looming? Source: Win Smart, CFA
A picture is worth 10,000 words...
By: Raman Khanna
High R&D spending does NOT guarantee growth and/or high shareholder returns
The chart below courtesey of Eric | AI & Tech Investing shows semiconductor companies ranked by R&D over the last 12 months. $INTC $QCOM $NVDA $AMD $TSM lead the way. Intel has spent over $100B in R&D over the last decade. Despite that, they have the 2nd lowest shareholder return of all these companies (see addt'l chart below). Intel has generated $52.9B in revenue over the last twelve months. A decade ago, Intel generated $52.4B in revenue. An important cautionary tale for investors: R&D doesn't guarantee growth. Source: Eric | AI & Tech Investing
Capital allocation framework
Source: invesquotes
Sentiment is turning bullish. Bears in the AAII sentiment poll moved from over 50% to under 20% during November
This is the lowest bearish % since Jan 2018 (which followed 2017's record 12 straight up months). What changed? Prices. The S&P 500 gained 8.9% in November, one of its best months ever. $SPX Source: Charlie Bilello
Record holiday spending: good news, just one problem: consumers used buy-now-pay-later schemes to spend $7.3BN from Nov. 1 to Nov. 26, up 14% from a year ago, per Adobe
These are basically vendor/3rd party financing programs which don't show up on already maxed out credit cards... Source: Statista, www.zerohedge.com
