Chart of the Day
In Asia, China Is Least Correlated to the US Market
Chart of the Day: We’ve looked at the correlation with the US market during the two major crises. China has been uncorrelated, a possible explanation is the Chinese regulation not allowing foreign access to its stock markets.
Read MoreDebt Burden Is Heaviest for the Gov’t in the US—but Not in China
Chart of the Day: China and US have more or less the same level of debt to GDP. In China, corporates have the highest burden while in the US the heaviest burden lies on the government.
Read MorePeaking US Net Margin and the Hidden Effect of Fed’s Policy
Chart of the Day: US net margin has recorded its highest peak since 1990. While net margin has been on the rise, efficiency has fallen. Fed’s policy of low interest rates has led to malinvestments, reducing efficiency.
Read MoreEV/EBITDA Has Only Been Higher in the US Before the Dot-Com Bubble Burst
Chart of the Day: The US market has traded in cheaper EV/EBITDA ranges 87% of the past 336 months. Historically, EV/EBITDA at this high level has led to negative subsequent returns on average.
Read MoreChina Has Been Twice as Hard to Predict
Chart of the Day: Globally, analysts have on average been 22% wrong in their EPS forecasts. Chinese analysts have been more inaccurate on average at 40%. Most accurate were Chinese analysts in Health Care.
Read MoreRevenue Growth of All Listed Non-Financial Companies in the World
Chart of the Day: All business starts with revenue. We’ve looked at on average 12,621 non-financial companies. Over the past 23 years, revenue growth has averaged 6%.
Read MorePast Betas Tend to Regress Towards 1.0x
Chart of the Day: Past betas tend to regress towards 1.00x. The beta you use for valuation is to infinity. To avoid mistake we use three betas: High risk: 1.25x, Average risk: 1.00x, low risk: 0.75x.
Read MoreChange in Net Working Capital Is Small, but Volatile
Chart of the Day: Changes in net working capital are volatile because that change results from five separate forecasts. Net working capital is a small but volatile investment item.
Read MoreThai Analysts Have Been Most Accurate in Health Care
Chart of the Day: Thai analysts have been 24% inaccurate on average. Most inaccurate in Industrials and Energy. Most accurate in Health Care, Real Estate, Telecoms, and Utilities.
Read MoreThai Analysts Have Been 24% Wrong on Average
Chart of the Day: Globally, analysts have on average been 22% wrong in their EPS forecasts. Thai analysts have been slightly more inaccurate on average at 24%. Remember, YAAW!
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