Comments on: Charts of the day, US listings edition http://blogs.reuters.com/felix-salmon/2011/01/25/charts-of-the-day-us-listings-edition/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: ARJTurgot2 http://blogs.reuters.com/felix-salmon/2011/01/25/charts-of-the-day-us-listings-edition/comment-page-1/#comment-23524 Wed, 26 Jan 2011 16:34:13 +0000 http://blogs.reuters.com/felix-salmon/?p=7084#comment-23524 Felix!

Probably not discussed at Davos, but lots of really neat charts:

http://www.gmo.com/websitecontent/JGLett er_PavlovsBulls_4Q10.pdf

The second half on Graham – Dodds is where the good charts are.

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By: dWj http://blogs.reuters.com/felix-salmon/2011/01/25/charts-of-the-day-us-listings-edition/comment-page-1/#comment-23521 Wed, 26 Jan 2011 16:06:50 +0000 http://blogs.reuters.com/felix-salmon/?p=7084#comment-23521 One of the great casualties of the 1970’s inflation is the phrase “dollars to donuts”; at this point, it’s about an even bet. Perhaps 30 years from now it will be understood as it was originally meant, but the other way around.

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By: johnhhaskell http://blogs.reuters.com/felix-salmon/2011/01/25/charts-of-the-day-us-listings-edition/comment-page-1/#comment-23510 Wed, 26 Jan 2011 09:13:45 +0000 http://blogs.reuters.com/felix-salmon/?p=7084#comment-23510 it’s interesting to note that the majority of de-listings came before SarbOx.

I would also like someone to make an educated guess as to how “online brokerage” can be blamed for delisting.

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By: Dan_K http://blogs.reuters.com/felix-salmon/2011/01/25/charts-of-the-day-us-listings-edition/comment-page-1/#comment-23509 Wed, 26 Jan 2011 04:11:16 +0000 http://blogs.reuters.com/felix-salmon/?p=7084#comment-23509 y2kurtus: Really? I wish I was so sanguine regarding the preformance of equities over the next 10 years. I’m not sure you understand what people mean by “safer”. Stocks will probably outperform equities over the next 10 years, but they are still less safe.

A treasury bond held to maturity will pay exactly what it says it will pay (or the world is so screwed up your equities will be a disaster anyways). Stocks will most likely do better, but they may not, and if you need them for retirement income you may be forced to sell at the equivalent of January 2009. This is called risk.

Basically, it seems insane to guarantee a 10-year equity performance at a date when equities have provided a zero return for 12 years.

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By: y2kurtus http://blogs.reuters.com/felix-salmon/2011/01/25/charts-of-the-day-us-listings-edition/comment-page-1/#comment-23507 Wed, 26 Jan 2011 03:00:17 +0000 http://blogs.reuters.com/felix-salmon/?p=7084#comment-23507 “…in a world where it’s easier, more lucrative, and less risky to buy bonds or foreign stocks or even commodities than it is to buy General Electric… ”

Felix I’ll bet you dollars to donuts that GE shares outperform GE bonds over the next 10 years or that the S&P 500 bought tomorrow will trounce the next 10 year treasury bond sold at auction and held to maturity.

With interest rates held at an artificially low level bonds are no longer “safer” than a diversified basket of stocks for those saving for a retirement a decade or more in the future. In the last 20 years rates fell 1000 basis points. In that world if you buy a 7 year bond at issue hold it for 5 years collecting the coupon and sell it at a huge premium and repeat the process… you just got coupon+.

In the next 10 years rates will rise… maybe not by 1000 basis points but still you’re going to get coupon – and that’s a night and day difference. Anyone who thinks bonds are still the place to be should note that the worlds largest bond manager is rushing to set up it’s equity business.

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By: Dollared http://blogs.reuters.com/felix-salmon/2011/01/25/charts-of-the-day-us-listings-edition/comment-page-1/#comment-23505 Wed, 26 Jan 2011 00:46:03 +0000 http://blogs.reuters.com/felix-salmon/?p=7084#comment-23505 But don’t forget that consolidation of maturing industries, lack of new groundbreaking industries, and the evaporation of the antitrust laws all have played a role in this decline. It isn’t just going private transactions that remove a listing.

(speaking as someone who’s managed a delisting or two…..)

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