Jan. 3, 2020

A LOOK AT MARKET RETURNS SINCE 2017, ANNUAL AND 3 YEAR AVERAGE

  • NASDAQ: 2017 = 28.24%; 2018 = -3.88%; 2019 = 35.23%: 3-year average = 22.23%
  • S&P500: 2017 = 19.42%; 2018 = -6.24%; 2019 = 28.88%: 3-year average = 14.77%
  • DJ Industrial: 2017 = 25.14%; 2018 = -5.63%; 2019 = 21.57%: 3-year average = 14.52%
  • Gold: 2017 = 13.68%; 2018 = -2.14%; 2019 = 18.87%: 3-year average = 10.75%
  • Oil: 2017 = 12.47%; 2018 = -24.84%; 2019 = 34.46%: 3-year average = 4.55%
  • S&P TSX: 2017 = 6.01%; 2018 = -11.64%; 2019 = 19.13%; 3-year average = 3.87%
  • Cdn Dollar: 2017 = 6.78%; 2018 = -7.75%; 2019 = 5.02%: 3-year average = 1.15%
  • Natural Gas: 2017 = -19.84%; 2018 = -3.45%; 2019 = -23.22%: 3-year average = -13.53%

TEN THINGS THE LAST DECADE BROUGHT TO WORLD MARKETS

  • FAANG…Facebook, Apple, Alphabet, Netflix, Google
  • Paying to borrow…negative interest rates
  • 100 year bonds…in 2010 Mexico issued $1billion in bonds maturing in 2110! Now there are 1,400 ‘century’ bonds worth almost $170 billion
  • Bitcoin…crypto currencies
  • Passive / Aggressive…ETF’s grew to $7 trillion from below $2 trillion in 2010.
  • Climate change impact on impacting…climate change is shaping investor thinking…non-renewable energy sector is out of favour and there is now over $30 trillion in sustainable or green investments.
  • Shale Oil…making the US a net oil exporter for the first time in 40 years
  • Electric Dreams…2010 Tesla went public…globally, now 2 of every 10 vehicles sold are electric
  • Flash crashes…algorithmic (computer trading) vs manual trading
  • Pot…Canada legalized marijuana…at the peak, the 10 largest pot stocks were worth about $50 billion…now they are worth $20 billion

TIDBITS

  • President Trump’s re-election campaign raised $46 million in the fourth quarter; his best fundraising quarter in this campaign.
  • For the Democrats, Senator Bernie Sanders raised $34.5 million; Mayor Pete Buttigieg raised $24.7 million, Former Vice-President Joe Biden raised $22.7 million while Senator Elizabeth Warren raised $21.2 million.
  • President Trump ordered a US airstrike that killed one of Iran’s most powerful generals, Qassem Soleimani, in response to the threat of an “imminent attack”. Iran has vowed “severe retaliation”.
  • Japan recorded 5.9% fewer births to a total of less than 900,000 for the first time since records started in 1899.
  • Tesla has started delivering Model 3 electric cars built at its Shanghai factory. Tesla began work on the $2 billion plant just under a year ago.
  • Drug makers including Pfizer, GlaxoSmithKline and Sanofi hiked US list prices by between 1% and 5% on more than 200 drugs starting January 1, 2020.