Capitalogix

The NASDAQ Composite Index Closed over 5,000 for the First Time in 15 Years

The Nasdaq Composite Index closed over 5,000 this week for the first time in 15 years.

A lot has changed since then.

For example, only three of the top 10 companies in the index remain the same.

 

via NYTimes.

But, notice the change in market cap for those that remain.

The only thing that remains constant is change.

Apple Now Twice as Big as the 2nd Largest Company in the World!

Apple stock has gained about 20% since the start of the year.

 

That may be cool, in-and-of-itself, but Apple's ever-expanding market cap continues to make headlines for other reasons. 

 

Last week, Bespoke tweeted that Apple's market cap surpassed the combined market caps of every single stock in the S&P 600 Small Cap index!

 

Moreover, Apple is also now more than twice as large as the second largest company (Exxon Mobil) in the world.  Below is a comparison of the market caps for Apple and Exxon going back to 2000.  

 

via Bespoke.

Just 15 years ago, Apple was struggling as a public company -- in December 2000 its market cap had dipped to just $4.65 billion.  15 years later, and Apple now has a market cap of $770 billion!

Below is a list of the 40 largest stocks in the S&P 500.  For each stock, Bespoke highlights its "Apple Multiplier", or the amount that each company would have to multiply by to reach the size of Apple.

 

 

As shown, Apple is currently 2.04x as big as Exxon Mobil -- the second largest company in the S&P.  Apple is more than 3x the size of companies like General Electric, Procter & Gamble, Facebook, and JP Morgan.  

Pretty staggering numbers.

Your Point of View Changes Your Trading Opportunities

I just spent the week celebrating Chinese New Year with Jennifer's side of the family In Jakarta.  

Gong Xi Fa Cai ... which translates to "Best wishes for a prosperous New Year!"

 

 

Interesting to think how many New Year celebrations there are.  In addition to CNY, the Muslims have Hari Raya Idul Fitri; Jews have Rosh Hashanah; of course there is January 1st (and there are many others).

Which is correct?  

It's all a matter of perspective.

The same is true in trading.  At some level, there really isn't a correct answer to which trading style is best.

Whether you are choosing from fundamental analysis, technical analysis, trend following, channel breakouts, or statistical arbitrage, people have their opinions, but sometimes one works better than the others.

It is a lot easier to go to a party, when there is a party to go to ... the trick is finding the celebration in the first place.

MAP: Living Costs Around the World

This map shows the difference in living costs around the world using figures from the world's largest database of user contributed data about cities and countries worldwide.

The Consumer Price Index, used to determine the difference in the living costs between countries, takes into account the prices of groceries, transportation, restaurants and utilities.

 

 

There are many more charts with specific data by region.  The chart below shows the places with the highest and lowest costs of living.

 

via MoveHub.

 

The CPI in the infographic is a relative indicator of a country's living costs compared to New York. So, for instance, if a country has a CPI of 70, on average it enjoys 30% cheaper living costs compared to New York.

Here Are Some Links For Your Weekend Reading

Sometimes things are stuck.  Other times they are not.  Here is all you need to know.

 

 

Here are some of the posts that caught my eye. Hope you find something interesting.

 

Lighter Links:

• How to Make Your Willpower Stronger -- According to Science. (Io9)
• Fear Artificial Stupidity, Not Artificial Intelligence. (New Scientist)
• Commonly Misspelled or Misused Words.  [infographic]
• 100 Ideas That Changed the Web. (BrainPickings)
• How The World Will Look In 100,000,000,000,000,000,000 Years Time. (FC)

 

Trading Links:

• Google Searches for a Way to Avoid Microsoft’s Fate. (The Guardian)
• Apple Pay Is Already Much Bigger Than You Thought. (BGR)
• 122 Things Everyone Should Know About Investing and the Economy. (Motley Fool)
• 5 Future Scenarios That Will Change How You Think About Money. (MarketWatch)
• The New Reality. China just 3D-printed an entire mansion. Here’s what it looks like. (TechInAsia)

Here Are Some Links For Your Weekend Reading

Seeming profound is easier than being profound.

 

 

Just saying ...

Here are some of the posts that caught my eye. Hope you find something interesting.

 

Lighter Links:

• Famous Business Books Summarized in One Sentence. (Business Insider)
• Windows 10 Upgrades Will Be Free for Existing Windows Users. (Infoworld)
• Sign of the Times: Sports Illustrated Lays Off All Staff Photographers. (NPPA)
• Compilation Video of People Using Exercise Equipment Wrong. (Facebook)
• World's Saddest Service Offers Make-Believe Mate.  For $25 you get 100 text messages, 10 voice mails, one handwritten note & a lifetime of secret shame. (ValleyWag)

 

Trading Links:

• Apple Now Sells More iPhones in China than the U.S. (Cult of Mac)
• Google 'To Take On Uber with Driverless Cars'. (Telegraph)
• CME To Close Open Outcry Futures Trading Pits By This Summer. (B.I.)
• Seattle Gets a Marijuana Vending Machine. (USA Today)
• The Best Investment Advice from 20 of the World's Top Market Minds. (Forbes)

World Markets Showing the Love

For Valentine's Day, the market shared its love by pushing the broad S&P 500 Index to new highs.

 

 via StockCharts.

 

The Nasdaq Composite also made new highs earlier this week.

Worldwide, Germany, Australia, France, Thailand, Indonesia, Shanghai, India and The Netherlands have all made new 52 week highs in 2015.

Here Are Some Links For Your Weekend Reading

Most people say they want the unpleasant truth, rather than the comforting lie ...

 

 

What do you think?

Here are some of the posts that caught my eye. Hope you find something interesting.

 

Lighter Links:

• Elon Musk, Stephen Hawking Warn of Artificial Intelligence Dangers. (Mashable)
• An Open Letter to Everyone Tricked Into Fearing Artificial Intelligence. (Popular Science)
• 70's Rock Legends In Their Parents' Homes! [Photos]. (Peewee)
• The Hair of Men: What Hairstyle is Best for You. [infographic]
• How Exercise Changes Our DNA. (NYTimes)

 

Trading Links:

• US Debt Soared By $100 Billion on Last Day of 2014, Hit Record $18.14 Trillion. (ZH)
• Chinese Attacks Cost U.S. Defense Department Over $100M. (GigaOM)
• The Real Story Behind Saudi Arabia's Oil Games. (Money)
• After Warning About 2008, Yale's Robert Shiller Has Another Concern. (Valuewalk)
• Countries Begin The Race To Repatriate Their Gold. Are They Concerned About a Potential Financial Crisis? (Valuewalk)

Is a Leading Indicator of Economic Activity Drying-Up?

If you are looking for insight into global supply and demand trends, the Baltic Dry Index is one of the purest leading indicators of economic activity.

It offers a real-time glimpse at global raw material and infrastructure demand, as well as the supply of ships available to move this type of cargo.

 

 

The low is troubling because this Index is often interpreted as a reliable indicator of demand. The Index moved higher from 2003 to 2008. Since then, we have seen a series of lower highs and lower lows.

The only positive I see is the divergence of the momentum indicator (at the bottom), which is higher - even though price is lower. 

However, with stock markets around the world near all time highs ... and demand for bulk commodity movements at all time lows, the paradoxical position is staggering.

For commodity followers, low prices are one thing but some of that can be attributed to a soaring $USD.

The Baltic Dry Index tells us how much demand there is for movement of the commodities. It is clearly indicating global weakness and the Central Banks around the world dropping their interest rates ahead of the analysts in almost every market suggests all is not well.

There is always a way to be a little better!

I was in Phoenix for a meeting this past week. 

Usually, the highlight of a trip like that entails desert vistas.  This time, however, I had a chance to visit the stadium where the Pro Bowl and Super Bowl was held (and thanks to some friends at Infusionsoft, got to see a game there too).

 

 

It was kind of cool to watch a celebration of those just a little better than who they play against.

There is always a way to be a little better!