Average Is Rare

The historical annual return of the S&P 500 index back to 1957 is 9.62%. Interestingly, the market almost never returns the average. In 1958, the market returned 43%, while in 2008, it dropped 37%. To try to visualize how rarely the index returns just its average, this chart shows one year moving averages in blue. You can see drastic variance …

Apple a Day…

In February of 2008, Bank of America was added to the Dow Jones Industrial Average. Five years later, it was taken out. This month, we were notified that Apple would be joining the price-weighted index. They were a candidate to be added back in 2008, with a market value of $100 billion and only one full year of iPhone sales. …

1.7 Million of Apple’s $10k Watch – Gone

Apple has a habit of generating a lot of buzz around their product launches. During their most recent event, the markets responded in a very timely fashion. In the annotated graph, you can see how Apple traded in response to real time announcements. Cheaper Apple TV? Good. New Macbooks? Awesome. Apple watch? Sell off. From the intraday high to the …

Bracket Buster

Over the next three weeks sports fans, basketball enthusiasts, and causal spectators across the nation will catch a case of March Madness. There will be a lot of numbers and statistics thrown around about the 68 teams, 67 games, and 75+ years of history related to the tournament. Over 70 million brackets will to be filled in and over $9 …

What’s for Dinner?

For the first time since the data has been recorded, sales at restaurants and bars in the United States have eclipsed those of grocery stores. The recent jump in discretionary spending in this space has pushed wages in the restaurant and bar service industry higher recently as the labor market has tightened and demand has increased. We hear a lot …

How Legislation Killed the Community Bank

The total number of banking companies in the United States has significantly decreased in the past couple decades. At the same time, regulations on the industry have increased and legislations have become more complex. The compound effect has not been a broad drop across the sector, but rather a distinct decrease in small or single-office banks. As the government and …

Nobody Really Saw What Happened in The Super Bowl

Some things need to be put into perspective. The Super Bowl is small potatoes compared to other sporting events outside the United States. Super Bowl Sunday is an entire day dedicated to drinking, eating, and yelling at terrible play calls. There have been petitions to make the following Monday a national holiday (read: recovery day). It’s sports’ greatest day… according …

Thanks A Lot, Obama?

Mr. President is back in the nation’s good graces. Can his approval rating be tied solely to prices at the pump? This chart- with approval ratings from Gallup, over gas prices from the US Energy Information Administration, shows a strong correlation between the two data points. Be wary that the gas price axis, on the right, graphs higher prices towards …

2015 Big Mac Index

The Economist has updated their “Big Mac Index”. The index is a creative way of showing vales of goods and services across the globe. The study is performed annually and is intended to visually represent Purchasing Power Parity (PPP) – the idea that long run exchange rates will normalize towards equal prices for a like basket of goods and services. …

Home Spreads are Normalizing

It has been 6 years since the end of the Great Recession. During which, the economy has slowly recovered. In 2008 and 2009, houses were being sold out of necessity. We saw huge spreads between asking price and sales price. As the economy recovered, frictional costs lowered, and transactions came about for different reasons, the data shows the spread decreasing …

Crowdfunding

In 2014, there was a boom of what is called ‘Crowdfunding’. Using the power of the masses, individuals and start-ups harness the power of small donations in big quantities. When sites like Kickstarter began, there were questions and concerns. Why would people donate money to fund projects on the internet? How will it affect venture capitals? Then the idea took …