How
much is one trillion?
·
If you
waited one trillion seconds, it would take 31,688 years.
·
If you
had a trillion dollars, and spent $10 million a day, it would take 273 years to
go broke.
·
If you
taped $100 bills end-to-end, you could wrap the earth 41 times with $1 trillion
dollars.
·
Alternatively,
you could paper over Delaware in $100 bills – twice.
Last
week, the value of global equities surpassed – not $1 trillion – but $70
trillion, according to BloombergBusiness,
which credited central banks’ stimulus programs for soaring stock values. Of
the 24 national stock indices covered by Barron’s,
10 have delivered double-digit returns year-to-date. These include Australia,
Japan, Hong Kong, China, and Philippines in the Asia Pacific region, and
France, Germany, Italy, Spain, and Sweden in Europe. The Standard & Poor’s
500, NASDAQ, and Dow Jones Industrial indices all remained in single-digit
territory. Barron’s reported:
“The market could bounce higher if first-quarter
results come in above reduced targets. So far, 20 of the 24 companies releasing
earnings have topped expectations, FactSet reports. The Dow Jones industrials
were propelled above 18,000 again last week, and the S&P 500 climbed north
of 2100.
But those who look beyond the first quarter see a
number of head winds facing U.S. equities. The Federal Reserve appears ready to
start raising interest rates, for one. The strong dollar looks to be a drag on
trade and earnings, and profit margins could be about to peak. Add to this
widespread investor optimism and above-average earnings multiples and the
market could be vulnerable.”
Experts are uncertain about the direction of stock markets and so are investors. Last week’s AAII (American Association of Individual Investors) Investor Sentiment Survey showed both bullish and bearish sentiments were below long-term averages (and lower than the previous week) while neutral sentiment is relatively high (and was up 14.5 percent over the previous week).
it’s a
millennial thing. Sure, you know China surpassed the United
States to become the world’s largest economy, but did you know the millennial
generation surpassed the baby boomers to become the largest generation here in
America? According to Pew Research,
there were about 75.3 million millennials (born from 1981 to 1997) at the end
of 2014 and about 74.9 million baby boomers (born from 1946 to 1964).
It’s no secret baby boomers have had a profound
effect on the American economy. History.com
reported:
“Baby boomers bought
mouse-ear hats to wear while they watched “The Mickey Mouse Club” and coonskin
caps to wear while they watched Walt Disney’s TV specials about Davy Crockett.
They bought rock and roll records, danced along with “American Bandstand,” and
swooned over Elvis Presley. They collected hula hoops, Frisbees, and Barbie
dolls. A 1958 story in Life magazine declared “kids” were a “built-in recession
cure.”
As they retire, the baby boomers are expected to
have a profound influence on health and wellness providers, pharmaceutical companies,
and others in markets that serve the needs of retired Americans.
The boomer generation has been the focus of
investors for so many years it can be easy to forget about the influence of
millennials. They’ve come of age during the Great Recession which curbed their
appetite for consumption. Millennials’ preference for access rather than
ownership sparked the ‘sharing economy,’ which includes online companies that
facilitate the sharing of unused goods. The
New York Times reported, “Millions of people are using social media sites,
redistribution networks, rentals, and cooperatives to share not only cars but
also homes, clothes, tools, toys, and other items at low or near zero marginal
cost. The sharing economy had projected revenues of $3.5 billion in 2013.”
It’s a good idea to keep an eye on demographic
change. It can have a profound impact on economies, industries, and companies.
“When your mother asks 'Do
you want a piece of advice?' it is a mere formality. It doesn't matter if you
answer yes or no. You're going to get it anyway.”
--Erma Bombeck, Advice columnist
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