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News

16 May 2023 - 10k Words | May Edition

By: Equitable Investors

10k Words

Equitable Investors

May 2023


Miserable IPO returns have been the story even though Kenvue got away with a 22% stag on day one of its US listing last week; a gap has opened between small and large stocks with the "jaws" notable in both price movements and valaution comparisons; in that context it is interesting to see how smaller stocks have outperformed historically coming out of market drawdowns; in Australia the industry survey looks negative but S&P/ASX EPS revisions haven't really been notable; insolvency is on the rise as is US consumer credit card debt; and finally for whoever is advising the state fo Victoria, credit ratings do matter.

Distribution of returns from US IPOs by issue date (2023 to date)

Source: Equitable Investors, StockAnalysis

Distribution of returns from ASX IPOs by issue date

Source: Equitable Investors

ASX small caps (SSO - orange) v large caps (STW - blue)

Source: Equitable Investors, TIKR

US micro caps (IWC - orange) v large caps (IVV - blue)

Source: Equitable Investors, TIKR

Past 20 Years World Small Cap P/E Ratios

Source: Pzena

Nasdaq 100 Price/Sales Ratio

Image

Source: Charles Schwab & Co.

US small caps v large caps during & after the "dot-com bubble"

Source: abrdn

US small caps v large caps during & after the GFC

Source: abrdn

S&P/ASX small v large during & after the "dot-com bubble"

Source: Equitable Investors, Iress

S&P/ASX small v large during & after the GFC

Source: Equitable Investors, Iress

AIG Industry Index

Image

Source: IFM, AIG

Consensus EPS expectations for S&P/ASX 200

Image

Source: Cannacord

Large bankruptcies ($US50m+ liabilities) - Jan-Apr count for 2023

Source: Bloomberg, @jsblokland

Australian companies entering external administration for the first time (FY23 = black line)

Source: ABS

US Consumer Loans (Credit Cards & Other Revolving Plans, All Commercial Banks)

Source: @glightfinancial, FRED

Government Bond Yields and their S&P credit ratings

Image

Source: Equitable Investors,

worldgovernmentbonds.com

May Edition


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Equitable Investors Dragonfly Fund


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