LTP Notes 008: Silver Generation, India's Dominance, Valuation By Country, and Others
Some investing notes that may help you gain insights or make long-term decisions.
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🤖 High Bandwidth Memory Demand
👵 Silver Generation
☀️ Top ESG-Related Terms
🦄 Unicorns Are Decreasing
🫰 Savings vs. Loans
🇮🇳 India's Dominance
🌐 Valuation By Country
✉️ Bezos' Letter
🤖 High Bandwidth Memory Demand
Advanced packaging technology is emerging as a critical solution for the AI era's explosive computing demands. As traditional semiconductor technology faces physical limitations, High Bandwidth Memory (HBM) stands out as the key innovation to deliver the enhanced latency, efficiency, and density required by AI applications.
The market projections are impressive: $200B in data center CapEx investment by 2028, $15.7T contributed to the global economy by 2030, and an impressive rise in high-bandwidth memory demand from 123 million GBs in 2022 to 972 million GBs by 2027. Lam Research leads with advanced packaging solutions.
Related analysis:
Stocks and ETFs to watch: LRCX, SOXX, SMH, MU
👵 Silver Generation
Consumer spending patterns have significantly transformed over the past 15 years, with the 65+ age group rising as the dominant economic force. While younger generations (25-34 years) have seen their spending share steadily decline, seniors have nearly doubled their consumer spending impact, rising from 14% in 2005 to almost 22% by 2020. The middle-aged segments show varying trends, with 45-54 years experiencing the steepest decline.
As I found, the Silver Age is naturally 50% invested in healthcare, a non-cyclical sector that is accordingly more resilient to economic downturns.
Stocks and ETFs to watch: UNH, JNJ, PFE, ABBV, CVS, XLV, VHT, IXJ
☀️ Top ESG-Related Terms
The frequency of specific ESG-related terms used by investors on Reddit. Climate change emerges as the most frequently mentioned term, followed by fossil fuels and renewable energy.
Stocks and ETFs to watch: ICLN, QCLN, TAN, FAN
🦄 Unicorns Are Decreasing
The global rise in unicorn companies (those valued over $1 billion) seems to be losing momentum. After a steep climb between 2020 and 2022, both the number of unicorns and their valuations have plateaued. In the first quarter of 2024, the creation of new unicorns has significantly dropped, signaling a slowdown in startup growth.
🫰 Savings vs. Loans
Over the past decade, U.S. personal savings have declined dramatically while consumer loans have risen. The gap widened especially after 2020. At the same time, borrowing has been steadily increasing, with consumer loans now sitting at nearly $2 trillion.
With personal savings now at some of the lowest levels in years, the reliance on loans might be an indicator of broader economic challenges ahead.
🇮🇳 India's Dominance
In the past few years, Indian equities have experienced a significant rally, driven by strong gross domestic product growth, robust corporate earnings, ample market liquidity, and increasing participation from domestic retail investors. This upward trajectory has led global funds, especially those focused on emerging markets, to increase their allocation to Indian equities. The underperformance of Chinese equities has amplified this shift.
Related analysis:
Stocks and ETFs to watch: INDA, PIN, EPI
🌐 Valuation By Country
A global snapshot of market valuation by country, categorized as undervalued, fairly valued, or overvalued — according to Morningstar. Emerging markets show a higher concentration of undervalued countries, while developed markets demonstrate a greater proportion of fairly valued and overvalued nations.
Stocks and ETFs to watch: VWO, VEA, VXUS
✉️ Bezos' Letter
Worth reading Jeff Bezos' letter to shareholders when Amazon stock was down ~80%. The letter emphasizes that Amazon is in a stronger position despite market challenges, with its long-term strategy and customer focus as a driving force for future growth. It cites Benjamin Graham's philosophy about the stock market acting like a "voting machine" in the short term and a "weighing machine" in the long term.
Stocks and ETFs to watch: AMZN
This is not a financial or investing recommendation. It is solely for educational purposes.