Market Cap to GDP: An Updated Look at the Buffett Valuation Indicator
With the Q3 GDP Second Estimate and the November close data, we now have an updated look at the popular "Buffett Indicator" -- the ratio of corporate equities to GDP. The current reading is 181.4%, up from 171.7% the previous quarter.
Tesla’s S&P 500 Entry Puts $70 Billion of Passive Trades in Play
Tesla Inc. climbed on Tuesday as investors braced for the company’s addition to the S&P 500 in one shot on Dec. 21, a move that’s expected to spur as much as $70 billion worth of passive-fund flows.
Absolute Return Letter - December 2020
Zombies are firms that are neither dead or alive. They are in so much debt that virtually all their free cash is used to service their debt, and that is very damaging to GDP growth. This month, we explain why there are more and more zombies all over the world, and why they do immense damage to the global economy.
November ISM Manufacturing Index: Continued Growth
This morning the Institute for Supply Management published its monthly Manufacturing Report for November. The latest headline Purchasing Managers Index (PMI) was 57.5, a decrease of 1.8 from 59.3 the previous month. Today's headline number was below the Investing.com forecast of 58.0 percent.
Markit Manufacturing Continues Improvement in November
The November US Manufacturing Purchasing Managers' Index conducted by Markit came in at 56.7, up 1.8 from the 53.4 final October figure. Markit's Manufacturing PMI is a diffusion index: A reading above 50 indicates expansion in the sector; below 50 indicates contraction.