Friday Charts: Dethroning Apple, Debt Supercycles and a November to Remember
It’s Friday. And you ain’t got nothing to do. So let’s get high on pictorial enlightenment.
What’s that you say? You must be a newbie.
Don’t worry. It’s not illegal.
It’s just that each Friday, I try to keep my mouth shut to let some carefully selected graphics convey the week’s most important economic and investing insights.
This time around, I’m dishing on the most-profitable and least-profitable companies in the world, a startling revelation about debt, and why history is on the bulls’ side. Here goes…
Mr. T. pitied the fool. I pity Apple (AAPL) CEO, Tim Cook.
He’s been given the impossible task of trying to fill the shoes of the company’s main visionary, Steve Jobs. And based on one uber important metric on Wall Street – profits – he’s failing.
For the second quarter in a row, the Korean electronics giant, Samsung, has outgunned Apple.
If share prices ultimately follow earnings, which stock would you rather own?
(Hint: In the last year, Samsung’s shares are up 14.5%, while Apple’s are down 11.8%.)
You’ve Got Mail No Profits!
On the other end of the profit spectrum lies our beloved U.S. Postal Service.
We all know that the situation is bad. But this graphic really puts it into perspective.
Blame email, text messaging, or Al Gore – it doesn’t matter. Nobody communicates via snail mail anymore, which means it’s highly unlikely that this trend will ever reverse itself.
We’re a nation of debtors at every level – government, corporate and personal. But at least we’re not Europe.
Ever since the financial crisis hit, total debt – as a percentage of GDP – has been falling in the U.S.
As for Europe? Not so much.
We’ve obviously got a long way to go still. But at least we’re headed in the right direction.
Historically, September is the worst month for the stock market. But not this year. The S&P 500 Index didn’t decline, as is the norm. Instead, it rose by 3%.
And October is usually the month of nasty market selloffs. Yet even reckless behavior on the part of politicians couldn’t sink stocks.
So what does November tend to deliver? More profits. (Talk about an early Christmas gift!)
Over the last 20 years, November ranks as the second-best month for stocks. The Dow averages a gain of 1.9% with positive returns 65% of the time.
And in this case, we want the market to follow its historical pattern.
That’s it for this week. Before you go, though, let us know what you think of this weekly column – or any of our recent work at Wall Street Daily – by going here.
Ahead of the tape,