World Economy – Industry as Share of Total GDP Industry represented 25% of the world’s GDP in 2018, and a larger percentage of GDP in emerging countries than in developed countries. Picture source: howmuch.net
Hedge Fund Industry Outperformance – Negative over Past Decade The chart below shows how it’s hard to beat the market over time. Picture source: Greenline Partners LLC
S&P 500 Bottom-Up Target Price Industry analysts in aggregate expect the S&P 500 to rise 13.0% over the next 12 months. Picture source: FactSet
Most Important Variables When Forecasting Real GDP Search trends are very different between China (manufacturing industry) and the USA/Eurozone (consumer), when forecasting real GDP. Picture source: Arbor Research & Trading LLC
Investor Allocation by Region in the U.S. This chart is a good example of investment bias and shows the likelihood of owning stocks in an industry vs. national average. Picture Source: J.P. Morgan Asset Management
U.S. Crude Oil Production and S&P 500 Energy Sector The U.S. is now the largest world energy producer, but the industry’s share of the S&P 500 market capitalization collapsed. Picture source: Bloomberg
Why Are Oil and Gas Companies Making Massive Investments for the Next 10 Years? Oil and gas companies are making massive investments for good reasons. The energy demand will flatten after 2030 and the oil and gas industry will go through a transition over the next decades. Below is the oil and gas forecast to 2050.…
Which Country Has the Highest Density of Robot Workers? South Korea had 710 installed industrial robots per 10,000 employees in the manufacturing industry in 2017. When robots replace manual labor, the productivity and the quality of products increase dramatically. Robots increase labor productivity levels and won’t take all the jobs. Picture source: Statista
Why Potential GDP Has Been Cut in Half Since the 1950’s? The main reason is a lower productivity than previous business cycles, due to: – lower population growth – the service sector is growing faster than the industry sector – lower quality jobs in the service sector have a lower productivity than in the industrial…
Watch Warren Buffett’s full interview with CNBC’s Becky Quick In this interview, Warren Buffett speaks about rail road, Berkshire Hathaway, economic slowdown, yield curve, recession, stock vs. bond, airlines & automotive industry, capitalism, inequality, benefits of free trade, IPOs, entertainment industry, Apple, American Express, Wells Fargo, real estate commission, philanthropy with 2% of GDP, odds,…
