Snapshots that wow!

Dry powder still persists

The 9% growth in online sales on Black Friday surprised some given the narrative around impending US recession. However given that US households still have an estimated $433 billion in excess savings remaining from the 2020-21 stimulus programs, the black friday sale number ain’t a surprise.

Source : Fed

Unicorns, returning to the myths again!

22021 was a whole other world.

Source: Pitchbook

Pests, the unloved sunrise sector!

Since 1998, revenues for pest control & exterminating services have grown without interruption at 6% CAGR in the US!

And their gross margins have more than doubled in the last two decades!

Source: US Census Bureau

The great working capital correction!

Cash generation focus by the Russell 1000 universe of companies in the US has been a persistent trend since post the GFC crisis. This was briefly interrupted by the supply chain issues caused by the pandemic. With shortages and the fear of same behind us, the working capital/ sales ratio has resumed its downward trajectory!

Source: Financial Times, Morgan Stanley Research

Frozen, Part 3

“Pending home sales in the US have moved down to their lowest level since April 2020, a month where much of US economy was shut down. The housing market is frozen.”

Source: Charlie Bilello

Narratives hide reality

America produces nearly 50% more crude oil than Saudi Arabia.

Source:The Economist