April 15 2015
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).
- Data as of 4/2/151- WeekY-T-D1-Year3-Year5-Year10-Year
- Standard & Poor’s 500 (Domestic Stocks)0.0170.0210.1770.1570.1190.059
- Dow Jones Global ex-U.S.188.8.131.52.82.83.3
- 10-year Treasury Note (Yield Only)2N/A2.623.94.5
- Gold (per ounce) 0.70.7-8.6-9.80.810.9
- Bloomberg Commodity Index-0.2-4.7-27.4-10.6-5.9-4.5
- DJ Equity All REIT TR Index-184.108.40.2064.914.19.3
*Indices are unmanaged and investors cannot invest directly in an index.
*Sources: Yahoo! Finance, Barron’s, djindexes.com, London Bullion Market Association.
*S&P 500, Gold, Dow Jones Global ex-Us, Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend).
*The DJ Equity All REIT Total Return Index does include reinvested dividends.
*All investments involve risk – coins and bullion are no exception. The value of bullion and coins is affected by many economic circumstances, including the current market price of bullion, the perceived scarcity of the coins and other factors. Therefore, because both bullion and coins can go down as well as up in value, investing in them may not be suitable for everyone. Since all investments, including bullion and coins, can decline in value, you should understand them well, and have adequate cash reserves and disposable income before considering a bullion or coin investment.