Friday, November 12, 2021

This week's interesting finds

An investor's journey with EdgePoint, part 2

 A lot’s happened over the last couple of years, so we updated Mimi’s video journey to demonstrate what an EdgePoint investor has experienced. The ride over the short term wasn’t a smooth one, but those who worked with their advisor and stayed invested are closer to their Point B.

This week in Charts

NASDAQ 100’s forward price/sales ratio has reached a new all-time high

The Nasdaq 100 Index is a basket of the 100 largest, most actively traded U.S companies listed on the Nasdaq stock exchange. The index includes companies from various industries except for the financial industry, like commercial and investment banks.

The widest gap on record between the U.S. Federal Reserve’s short-term interest rate setting and year-over-year CPI

Large gap in return expectations

Amount of data generated every minute

“Excess” household savings could yet boost spending

 • With household saving rates still elevated in most developed economies, “excess savings” have continued to rise. If people were to run down these savings, this would breathe new life into consumer recoveries. 
 • By the end of Q2 (the latest data available), households in advanced economies were holding currency and deposits that were some $3.7 trillion higher than we might have expected them to be had there been no pandemic. 
 • Household’s savings rates have fallen back from their peaks. The US aside, though, they remain much higher than before the pandemic. This is because while household incomes remain resilient, consumer spending is yet to stage a full recovery. 

DM – developed markets
NPISH – non-profit institutions serving households

The Most Important 2000 Years of Energy History (Video: 33 minutes)
 Few people think of energy at all and even fewer think about its history. We are on the verge of a new chapter in the history of energy and few people realize the implications. Learn more about:
• The one thing that increased real GDP growth 20-fold 
• Why the largest city was 1 mm people for 2000 years 
• Why renewables are a major step backwards 
• Why we might be on the verge of the most important energy revolution in 400 years.