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How Macro Trends Shape the Market’s Future

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It’s hard to say for certain what the future holds.

Without the luxury of a crystal ball, investors must find opportunities by analyzing the market. There’s just one problem: the 24/7 news cycle is enough to make anyone’s head spin.

Where should an investor focus their attention, when almost every new venture is forecast to be the next big thing?

The Powerful Influence of Macro Trends

Today’s infographic comes to us from U.S. Global Investors, and it highlights how analyzing macro trends can serve as a key investment tool.

U.S. Global Macro Trends

Two Main Investment Approaches

When selecting stocks, many investors fall into one of two camps:

1. Top-down Investing

  1. Analyze macroeconomic trends.
  2. Identify specific sectors and regions.
  3. Choose individual stocks based on company fundamentals.

Considering the aging Chinese population, a top-down investor may choose to invest in Chinese healthcare stocks.

2. Bottom-up Investing

  1. Complete in-depth company analyses.
  2. Select a stock that is outperforming others in its sector.

A bottom-up investor could analyze Home Depot and choose to invest if it had strong performance relative to Lowe’s.

These approaches can be used separately, or even combined together. Zooming out allows investors to identify the big picture opportunities. Then, a bottom-up approach can find the companies that best capitalize on each trend.

What is a Macro Trend?

A macro trend is a long-term directional shift that affects a large population, often on a global scale. For example, climate change is affecting industries in both positive and negative ways. While “green” industries have seen increased support, ski resorts are projected to have 50% shorter winter seasons by 2050.

There are a couple of main ways to identify macro trends:

  1. Government policy
    Government policies are a precursor to change, shaping macro trends and creating opportunities. For instance, Obama’s Recovery Act fueled growth in renewable energy with a $90 billion investment.
  2. Economic cycles
    The cyclical nature of the economy means that investors can also use history to identify macro trends. Consider fiscal and monetary policy, which is implemented in response to economic data:

    • Expanding economy
      The central bank raises rates and the government reduces fiscal stimulus. As a result, inflation is moderated.
      • Contracting economy
        The central bank lowers rates and the government increases fiscal stimulus. As a result, growth is stimulated.

Discovering Long-Term Value

Macro trends are a key tool for discovering long-term market opportunities. They are beneficial because they are:

  • Unbiased and data-driven
  • Not swayed by daily headlines
  • Tend to avoid riskier, niche industries
  • Can be diversified by sectors and regions

There are currently many macro trends at play. For example, Trump’s sweeping tax reform and deregulation boosted the U.S. economy, lifting GDP growth to a 13-year high of over 3% in 2018 Q3.

However, not everyone’s a winner. America’s reduced taxes have made Canada less competitive. It’s estimated that 4.9% of Canada’s GDP is at risk due to ripple effects from U.S. tax reform. What’s more, regulators worry that the bank deregulations might put the financial system at risk.

The proposals under consideration… weaken the buffers that are core to the resilience of our system.

— Lael Brainard, Member of the Board of Governors of the Federal Reserve

So, how do investors distill this wealth of information into a future of wealth?

Spotting the Next Wave

In today’s hyper-connected world, it’s easy to get lost in data overload. Thinking big picture allows investors to focus on trends that:

  • Have a long-term outlook
  • Affect a large population
  • Create a clearer vision of the future

Then, an investor can target the most promising regions and sectors. When used effectively, this approach enables investors to ride the next big wave that will shape markets.

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Markets

Ranked: Which NBA Team Takes Home the Most Revenue?

The Celtics and the Mavericks are the fourth and fifth highest-earning teams in the NBA. We show the top teams in the NBA by revenue in 2023.

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This circle graphic shows the top teams in the NBA by revenue during the 2022-2023 season.

Which NBA Team Takes Home the Most Revenues?

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

The NBA is projected to earn $13 billion in revenue this year before revenue sharing and debt payments, a 11% jump from last season, driving NBA team valuations even higher.

Since 2005, NBA team valuations have increased faster than any other major U.S. league by a wide margin. For perspective, the rise in their combined valuation has exceeded growth in the S&P 500 by more than threefold during this time period.

This graphic shows the top NBA teams by revenue, based on data from JP Morgan Asset Management.

Ranked: The Highest-Earning NBA Teams

Below, we show the revenue of all 30 NBA teams as of the 2022-2023 season:

RankingTeam2022-2023 Season
Revenue
Valuation
1Golden State Warriors$765M$7.7B
2Los Angeles Lakers$516M$6.4B
3New York Knicks$504M$6.6B
4Boston Celtics$443M$4.7B
5Dallas Mavericks$429M$4.5B
6Los Angeles Clippers$425M$4.7B
7Houston Rockets$381M$4.4B
8Chicago Bulls$372M$4.6B
9Philadelphia 76ers$371M$4.3B
10Miami Heat$371M$3.9B
11Brooklyn Nets$367M$3.9B
12Phoenix Suns$366M$4.0B
13Denver Nuggets$348M$3.4B
14Cleveland Cavaliers$348M$3.4B
15Milwaukee Bucks$329M$3.2B
16Atlanta Hawks$326M$3.3B
17Washington Wizards$323M$3.5B
18San Antonio Spurs$319M$3.3B
19Toronto Raptors$305M$4.1B
20Portland Trail Blazers$300M$3.1B
21Sacramento Kings$289M$3.3B
22Utah Jazz$274M$3.1B
23Detroit Pistons$274M$3.1B
24Charlotte Hornets$269M$3.0B
25Oklahoma City Thunder$267M$3.1B
26Indiana Pacers$263M$2.9B
27New Orleans Pelicans$262M$2.6B
28Orlando Magic$261M$3.0B
29Minnesota Timberwolves$259M$2.5B
30Memphis Grizzlies$258M$2.4B

Revenue figures are net of arena debt service and revenue sharing

With $765 million in revenue, the Golden State Warriors are the highest-earning team in the league, thanks to the stellar performances of all-star players Klay Thompson, Stephen Curry, and Draymond Green.

These players were instrumental in driving the valuation of the franchise, which grew from $1.5 billion in 2015 to a remarkable $7.7 billion in 2023. At this valuation, the Golden State Warriors are the second-most valuable sports team in America, following after the $9 billion Dallas Cowboys NFL franchise. Since 2010, the Warriors’ revenue has increased by sevenfold.

Not only did the team have the highest NBA TV ratings in seven of the last eight years as of last season, the Warriors have the largest social media following across U.S. sport franchises, including 32.4 million Instagram followers. By comparison, the Lakers have 24.6 million followers. Adding to this, the team’s jersey patch deal with Rakuten is worth approximately $45 million per season alone.

Ranking in second are the Los Angeles Lakers, earning $516 million in revenue. Over the last decade, revenues have increased by 76% fueled by the star power of LeBron James and the team’s world-renowned brand. In 2021, the team signed a five-year $100 million jersey patch deal with Korean food brand, Bibigo, making it one of the most valuable in the league.

The New York Knicks are third in revenue with $504 million, followed by the 2023-24 season champions, the Boston Celtics with $443 million in the 2022-23 season and the Dallas Mavericks in fifth at $429 million.

How Do NBA Teams Earn Revenue?

Below, we show the primary sources of revenue for the National Basketball Association (NBA):

Revenue Stream2022-2023 Season
Revenue
Share of Revenues
National Revenue
(Media/broadcast deals, merchandise, shared ticket revenue, other sponsorships)
$4.5B41%
Seating/Suites$2.9B26%
Local Media$1.4B13%
Team Sponsorships$1.3B12%
Concessions/Parking/Other$0.9B8%

As we can see, national revenue makes up the league’s largest share, driven by broadcasting and streaming agreements with national providers.

Going forward, these contract values are set to grow substantially. Today, the league is negotiating broadcasting deals with Amazon, ESPN, and NBC worth an estimated $76 billion over 11 years—making the annual contract value 2.6 times higher than its current contract. With NBA viewership up 16% across ESPN and ABC compared to the 2021-2022 season, strong demand is driving bigger media deals. During the 2022-2023 season, average viewership reached 1.7 million per game across these outlets.

Ticket and suite sales, another key source of revenue, topped $2.9 billion over the 2022-2023 season. In some cases, courtside tickets cost upwards of $3,000 per seat, with a host of celebrities from Jack Nicholson to Kendall Jenner and Bad Bunny sitting close to the action.

Following next in line were local media deals, worth $1.4 billion, and team sponsorship deals, valued at $1.3 billion.

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