5 charts that tell interesting stories on markets and investing.
1) Global Growth Rate in Q2
#Source – Charlie Bilello
India reported a GDP growth of -23.9%. This is worst performing among major global economies. The primary reasons for same are strict lockdown and very less fiscal stimulus by Government.
2) Business Resumption in India:
The above chart shows that the Business Resumption Index of India is currently at 75.7% in comparison to pre Covid level. There has not been meaningful improvement in last 2 months.
This is going to be challenging for India especially when the daily number of Covid cases are highest in the world.
3) Historical Earnings of Nifty Companies:
#Source – Trendlyne
The above chart shows the historical movement of earnings for Nifty companies. The corporate earnings were almost flat between 2014 and 2019. These were wash out years for India Incorporation.
Due to Covid, the earnings have fallen significantly. Corporate earnings in India need to bounce back significantly and have a lot to catch up.
4) Technology adoption in US households:
The above chart shows the adoption rate of new technology in US. Electricity took almost 50 years to reach out to everyone. Adoption of recent technologies like Social Media and Tablet has been very quick.
This means that disruption due to technology is happening faster. Big tech companies like FAMANG (Facebook, Apple, Microsoft, Amazon, Netflix, Google) need to continuously innovate to stay on top and new small tech companies can suddenly become big like Tesla, Spotify, Shopify, Zoom etc.
5) Daily new cases of Covid in US:
#Source – Worldometers
The above chart shows the daily new Covid cases in US. The second wave of Covid cases is slowing down. This will have impact on US elections in November 2020 which may further have impact on global markets.
Dr. Mukesh Jindal CFA, CFP, CAIA, Ph.D.