Datastream

Over Half of U.S. Young Adults Now Live With Their Parents

Published

2 weeks ago

November 19, 2020

Aran Ali

The Briefing

Since 1900, the portion of young adults living with their parents has ranged from 29-52%
These numbers have steadily increased since 1960
In 2020, the majority of U.S. adults aged 18-29 live with their parents

Over Half of U.S. Young Adults Live With Their Parents

In the last few decades, young adults have faced harsh economic realities—from the financial crisis in 2008 to this year’s global pandemic, both triggering catastrophic losses in jobs and financial stability.

And while the widespread effects of COVID-19 have yet to be fully captured, young adults are already now living with their parents to a greater degree than witnessed in 120 years—surpassing even the Depression-era generation.

Decade	% Of Young Adults (18-29) Living With Their Parents
1900	41%
1910	40%
1920	42%
1930	43%
1940	48%
1950	35%
1960	29%
1970	31%
1980	32%
1990	36%
2000	38%
2010	44%
2020	52%

Young adults today are categorized as either late Millennials and Gen-Zers. For them, COVID-19 has just been another addition to the list of financial hardships they’ve been up against, such as a precarious job market and the rising cost of living.

Failure to Launch: But Why?

There are a few possible factors that could explain the increase in young adults living with their parents.

1. The lackluster job market
The barista or server with multiple degrees has become a common portrayal of the struggling millennial. Despite the less than rosy outcomes, it has not been for want of trying. Younger people today are actually the most educated generation in history. Unfortunately, a degree does not map out a path to success the way it did for prior generations.

2. Tying the knot later
Today, people get married nearly a decade later than prior historical averages, and many young adults are opting to stay with their parents until they tie the knot. It’s also worth noting that as time goes on, young adults are getting married at lower rates than in the past.

Where does this data come from?

Source: Pew Research Center
Notes: This data was released on September 4, 2020

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Datastream

Which Industry Boasts the Most Billionaire Wealth?

After the coronavirus-related market crash in early 2020, billionaires across every sector saw a double-digit increase in wealth.

Published

1 day ago

December 3, 2020

Aran Ali

which industry boasts the most billionaire wealth

The Briefing

In every single sector, billionaire wealth saw positive growth from 2019 to 2020
Billionaire wealth in technology reached $566 billion after growing 41%, while healthcare reached $548 billion, growing 36%

It’s a Billionaires World

During the pandemic, billionaire wealth has shot up an average of 27% across various industries. Concurrently, the middle and working class have struggled, U.S. unemployment reached record highs, and millions of Americans are worried about facing eviction or foreclosure in the near future.

Tech and Healthcare Pull Ahead of the Pack

The industries that historically promote wealth creation for billionaires have undergone a number of changes in recent times.

Technology and healthcare have surged ahead of the pack, as companies in these industries possess qualities that have made innovation a huge value and growth driver. Innovative factors include AI, big data analytics, and a digital and cloud footprint.

Industry	Wealth Per Industry ($ Billions)	Growth Rates between April-July 2020
Technology	$565.7	41.1%
Health industries	$548.0	36.3%
Industrials	$376.9	44.4%
Real estate	$342.5	12.9%
Consumer & retail	$300.1	26%
Other/diversified	$268.1	20.7%
Financial services	$229.1	12.8%
Materials	$206.1	29.6%
Entertainment & media	$204.1	20.7%

The pandemic enabled those well equipped to pivot towards the new environment and business landscape, while those without these advancements were forced to haphazardly adjust.

As a result, billionaires in these two industries have reaped great rewards. Between April-July 2020 they generated $164.8 billion and $145.7 billion in wealth between technology and healthcare respectively.

Playing Catchup

The graphic shows the two leading industries building a considerable spread between them and those lagging behind. As these innovative technologies take the mainstream, it may suggest the other industries will have the chance to catch up.

In real estate for instance, the wave of innovation is least prevalent according to the original report, yet disruption and innovation are already on their way. Consider two stocks in Zillow and Redfin: the first operates in residential real estate services exclusively through web and mobile, while the latter is a digital real estate brokerage that has the potential to undercut real estate agents.

Could these industry wealth results in a post-pandemic world look very different?

Where does this data come from?

Source: PWC Billionaires Report.
Notes: This data was released in the summer of 2020

Datastream

Tesla Bears: A Short Short Story

Tesla has gained infamy for the sheer depth of short seller activity on its stock. After years of 20% of shares short, the 2020 rally has led to capitulation for Tesla bears.

Published

1 day ago

December 3, 2020

Aran Ali

The Briefing

Tesla, Inc has gained infamy for the sheer depth of short seller activity on its stock. At its peak in 2019, over 200 million shares were short
However, short sellers have recently capitulated, thanks to Tesla’s monster year
TSLA shares are up roughly 600% YTD

Tesla Bears: A Short Short Story

Short selling is often said to be the Wild West of financial markets. Where there’s a short seller, there can be whipsawing asset prices just around the corner. Tesla is no exception.

In some cases billions of dollars pour behind these short ideas—conducted by some of the world’s most sophisticated investors.

The efficient market hypothesis suggests short selling is a necessary evil that helps the market reflect on all the information of a given security and obtain its true market value. Yet most market participants are anything but receptive to short sellers.

The market—which tends to be long, often panics when a short seller enters the arena and takes the opposite stance. What typically follows is an avalanche of legal and regulatory action from corporate lawyers to the SEC.

In the case of Tesla, short sellers couldn’t have gotten it more wrong – at least for now. Some market commentators call it the most unprofitable short witnessed. The data shows that approximately 20% of Tesla shares have been held short since 2016. This year a reported $27 billion has been lost betting against Tesla.

Date	Shares Sold Short	Dollar Volume Sold Short
October 30th, 2020	47,800,000	$19 billion
October 15th, 2020	52,960,000	$22 billion
September 30th, 2020	57,130,000	$25 billion
September 15th, 2020	59,040,000	$24 billion
August 31st, 2020	54,890,000	$20 billion
August 14th, 2020	12,310,000	$5 billion

Tesla’s short thesis is often anchored around a few compelling narratives. The first is that Tesla’s present day fundamentals are poor—a $530 billion company delivered 139,300 vehicles in Q3’20 and turned a $331 million profit. That’s after government subsidy programs.

The second, the electric vehicle market is expected to be competitive with many players, and short sellers make the point Tesla is currently priced as the sole-winner in this space.

We don’t know how the future EV market will transpire, but with Tesla shares up 600% year-to-date, and with the company set to join the S&P 500, some bears look to be calling it quits.

Where does this data come from?

Source:Ycharts
Notes: Financial data is as of December 2nd, 2020