Financial Double Takes Week Of Date (October 1, 2018)
Peter Sayles |
Financial Double Takes
Week Of Date (October 1, 2018)
The world of finance and business is a fun thing to watch from the sidelines.
What makes it fun?
Well first let’s give a little context.
There’s a buyer and seller at the end of every transaction. Two people who value the same thing differently – aka subjectively.
The price depends on what the buyer is willing to pay. And what the seller is willing to give it up for.
One farmer may be willing to give up 20 chickens for one cow. Another farmer may be willing to give up 10. Another one may want to give up 100 chickens.
It’s not whether the farmer is “getting a better deal.” It’s what each farmer thinks the value of one cow is.
Multiply this simple example across millions of different assets.
Chickens. Cows. Dollars. Gold. Barrels of oil. Stocks. Bonds. Cars. Homes.
You name it. A market is always made between buyers and sellers.
But sometimes the value two parties see between two items turns into speculation. Which then turns into frenzy. This is where asset price bubbles can form.
Most bubbles form when buyers are willing to pay any price for an asset. All in hopes of selling it to someone else at an even higher price.
Whether it’s tulips in the 17th century. Tech stocks in the late 1990s. Mortgages in the mid 2000’s. Beanie babies. Pokemon cards. Anything.
Looking back… we wonder how people could have fallen victim to these bubbles.
But it all rolls back into what the buyer was willing to pay for it. And what the seller was willing to give it up for.
This is what brings us to our Financial Double Takes column.
It gives cadence to one of MightyTrades’ favorite financial writers Grant Williams and his letter: Things That Make You Go Hmmm…
Every week we’re going to post facts, articles, or tidbits in the markets that are fascinating. Some that are bullish. Some that are bearish. Some that remind us the sheer size of a company’s operations. Complete government recklessness. Financial bubbles.
It won’t just pertain to stocks. It could private equity valuations. Housing prices too.
Really whatever we find that is a remarkable statistic in the world of finance. Good or bad.
There won’t be any personal bias or commentary.
Just the facts. Do with them as you please.
So, without further ado… here’s a couple things that make us do a double take:
According to Standard & Poor’s, as of the end of June, U.S. corporate debt was a record $6.3 trillion.
“A survey of Generation Z found that a fifth of users are looking at Snapchat less frequently because of the redesign and growing ambivalence toward features like Snapstreak, which marks consecutive number of days friends have exchanged a message with each other, per Business Insider.”
“Spending on digital marketing grew by 44 percent last year in the United States and Britain to $52 billion, a study has found, estimating that global outlays on such tactics are approaching $100 billion.”
￼”The market for augmented and virtual reality was about $14 billion in 2017. But by 2022, the global market is expected to hit $209 billion. That’s a compound annual growth rate of 71%.” (IDC)
- “The S&P is within 0.35% of its 52-week high, yet more than 5% of NYSE securities have sunk to a 52-week low. That has occurred on 14 days since 1965, with 13 of them leading to a negative return two months later.” (SentimenTrader)
The amount of time users spend on the game Fortnite is absolutely insane. Over 20% of users are spending more than 16 hours per week playing Fortnite. And 35% of high school and/or college students have reported to have missed school to play Fortnite.
**Here’s our Financial Double Takes for the week of September 24, 2018.
**Here’s our Financial Double Takes for the week of September 17, 2018.