8 stats that should matter to investors

Chad Padowitz

Talaria Asset Management

Our team were chatting recently about the amount of change in markets and economies over the last 12 months or so, and some of the weight of numbers that keep building the case for inflation that I’ve written about a bit lately.

We found some interesting stats from Bank of America that really bring this home:  

$1 billion:

Central banks purchased $1 billion of financial assets every hour since February 2020 ($21 trillion since GFC).


Projected US national debt per taxpayer in 2025 (debt to equal $27 trillion).

$4.5 trillion:

Issuance of US Treasuries in 2021 set to easily exceed GDP of Germany.

$51 trillion:

The gain in global equity market cap since March 20 lows (fastest/largest rally all-time).


The worst first quarter return ever for 30-year Treasury, worst for IG bonds since 1980, worst for gold since 1982.

$602 billion:

Inflow to global stocks past five months exceeds inflow of prior 12 years ($452 billion) – nearly all of which went to the US market.

$8.2 trillion:

Market cap of Apple ($2.2 trillion) + Microsoft ($1.9 trillion) + Amazon ($1.7 trillion) + Google ($1.5 trillion) + Facebook ($0.9 trillion) = all Emerging Markets (population 6 billion).


YoY gain in US used car prices & US house prices +17% YoY highest ever …both lead barometers for US inflation.

Why do these numbers matter?

Because the increasing likelihood of inflation will have a significant impact on those investors buying into indices now, especially in the US. They are dominated by a few companies that have already risen in value to the point that the time to get your money back is well over 50 years. (The recent earnings season showed that despite massive profits, stocks like Apple, Amazon and Google were all down post their reporting).

And even if interest rates are held low for a long time, rising inflation means the further away you are from your money, the less that money is worth. This would be a disaster for these highly rated growth stocks.

And if all this seems like conjecture, take it from the people on the front line like the CFO from Dick’s Sporting Goods (NYSE: DKS): "We do see continued, at least in the short term, over the next couple of years, continued wage inflation pressures"

So we feel investors need to ignore the noise and speculation and unsophisticated activity. Diversify your equities across sector, geography and return type, and focus on Value stocks where much lower valuations mean you’re going to get your money back – sooner rather than never.

Never miss an insight

Enjoy this wire? Hit the ‘like’ button to let us know. Stay up to date with my content by hitting the ‘follow’ button below and you’ll be notified every time I post a wire. Not already a Livewire member? Sign up today to get free access to investment ideas and strategies from Australia’s leading investors.

The information in this article is general information only and is not based on the objectives, financial situation or needs of any particular investor. In deciding whether to acquire, hold or dispose of the product you should obtain a copy of the current Product Disclosure Statement (PDS) for the Fund and consider whether the product is appropriate for you. Wholesale Units in the Talaria Global Equity Fund (the Fund) are issued by Australian Unity Funds Management Limited ABN 60 071 497 115, AFS Licence No. 234454. Talaria Asset Management Pty Ltd ABN 67 130 534 342, AFS Licence No, 333732 is the investment manager and distributor of the Fund. References to “we” means Talaria Asset Management Pty Ltd, the investment manager. A copy of the PDS is available at australianunity.com.au/wealth or by calling Australian Unity Wealth Investor Services team on 13 29 39. Investment decisions should not be made upon the basis of the Fund’s past performance or distribution rate, or any ratings given by a rating agency, since each of these can vary. In addition, ratings need to be understood in the context of the full report issued by the rating agency itself. The information provided in the document is current at the time of publication.

Chad Padowitz
Co-Chief Investment Officer
Talaria Asset Management

Chad is the Co-Chief Investment Officer and co-founder of Talaria Asset Management. He has more than 21 years of experience in the financial services industry in the UK, South Africa and Australia. Talaria's investment strategy seeks to increase...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment