{"id":108270,"date":"2017-06-30T10:33:29","date_gmt":"2017-06-30T14:33:29","guid":{"rendered":"http:\/\/countingpips.com\/?p=108270"},"modified":"2017-06-30T06:34:12","modified_gmt":"2017-06-30T10:34:12","slug":"friday-charts-patents-dot-bombs-and-the-incredible-shrinking-stock-market","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/06\/friday-charts-patents-dot-bombs-and-the-incredible-shrinking-stock-market\/","title":{"rendered":"Friday Charts: Patents, Dot Bombs and the Incredible Shrinking Stock Market"},"content":{"rendered":"<div id=\"inves-3032350838\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">June 30, 2017<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p>By <a href=\"http:\/\/WallStreetDaily.com\/\"><u>WallStreetDaily.com<\/u><\/a> <img loading=\"lazy\" decoding=\"async\" class=\"attachment-home-th size-home-th wp-post-image\" style=\"display: block; margin-bottom: 5px; clear: both;\" src=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/06\/0617_fridaycharts_feature.jpg\" sizes=\"auto, (max-width: 580px) 100vw, 580px\" srcset=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/06\/0617_fridaycharts_feature.jpg 580w, https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/06\/0617_fridaycharts_feature-300x155.jpg 300w\" alt=\"Friday Charts: Patents, Dot Bombs and the Incredible Shrinking Stock Market\" width=\"580\" height=\"300\" \/><\/p>\n<ul>\n<li>The predictive power of patents.<\/li>\n<li>Patents enjoy a trickle-down effect.<\/li>\n<li>Irrational musings of false prophets.<\/li>\n<li><a href=\"https:\/\/pro.agorafinancial.com\/m\/704681\" target=\"_blank\" rel=\"noopener\"><strong>Also recommended: The culmination of my life\u2019s work\u2026<\/strong><\/a><\/li>\n<\/ul>\n<hr \/>\n<p>It\u2019s Friday in the <em>Wall Street Daily <\/em>nation. And that means it\u2019s time to go to the charts!<\/p>\n<p>Each week, I embrace the adage that a picture is worth a thousand words. And I handpick a few compelling charts to convey an important investment or economic insight.<\/p>\n<p>This week, I\u2019m serving up more third-party proof that patents aren\u2019t worthless pieces of paper.<\/p>\n<p>I\u2019m denouncing a few false prophets in the mainstream financial press about tech valuations.<\/p>\n<p>Last, but not least, I\u2019m sharing an all-too-important reminder why small caps still offer the most explosive upside potential.<\/p><div id=\"inves-2678480998\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>So let\u2019s get to it\u2026<\/p>\n<h2 class=\"subhead\">Patents and the Wealth of Nations<\/h2>\n<p>Pardon the redundancy, but it bears repeating every time there\u2019s fresh, third-party proof \u2014 patents matter.<\/p>\n<p>For investors and, believe it or not, the wealth of nations!<\/p>\n<p>A <a href=\"https:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=2776773\" target=\"_blank\" rel=\"noopener\"><strong>recent study<\/strong><\/a> by Stanford University professor and Hoover Institution senior fellow Stephen Haber demonstrates \u201cthere is a causal relationship between strong patents and innovation.\u201d<\/p>\n<p>Or more plainly, as you can see in the chart, more patents produce more wealth in the form of economic output, or GDP:<\/p>\n<p class=\"centered\"><img decoding=\"async\" class=\"centered aligncenter\" src=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/06\/patents_chart.png\" alt=\"Show me the patents\" \/><\/p>\n<p>It stands to reason that the macro observation applies to the micro world, too. To wit, if strong patents produce profits for countries, strong patents should also produce profits for the individual companies that own the strongest patent portfolios.<\/p>\n<p>We\u2019ve experienced this firsthand in our premium advisory <em>True Alpha<\/em>, as countless winners came as a result of finding companies with unparalleled patent portfolios. So many times, in fact, we\u2019ve made patents an integral part of our investment strategy.<\/p>\n<p>We recommend you do the same or let us do it for you by joining our growing ranks <a href=\"https:\/\/pro.agorafinancial.com\/m\/704677\" target=\"_blank\" rel=\"noopener\"><strong>here<\/strong><\/a>.<\/p>\n<h2 class=\"subhead\">This Is Not a Tech Bubble (Yet)<\/h2>\n<p>As we\u2019ve chronicled here before, one sector continues to power the markets to new record highs: technology.<\/p>\n<p>That\u2019s led many to take to the airwaves to proclaim we\u2019re in the midst of another mega tech bubble. Ignore these false prophets!<\/p>\n<p>Another dot-com-style collapse is not imminent.<\/p>\n<p>As John Higgins at Capital Economics reassures us, \u201cThe surge in the valuation of the stock market that took place during the dot-com bubble has not been repeated.\u201d<\/p>\n<p>And this chart proves it:<\/p>\n<p class=\"centered\"><img decoding=\"async\" class=\"centered aligncenter\" src=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/06\/dotbomb_chart.png\" alt=\"Not another dot bomb\" \/><\/p>\n<p>While investors are exuberant, they haven\u2019t pushed valuations above a price-earnings ratio of 30. That doesn\u2019t mean such a sky-high valuation is a prerequisite for a collapse. But it does mean anyone saying history is repeating itself is dead wrong.<\/p>\n<h2 class=\"subhead\">The Incredible Shrinking Stock Market<\/h2>\n<p>Buyouts. Breakups. Regulatory headaches. Excess venture capital funding. And bankruptcies at the hands of Amazon.com Inc.\u2019s ever-expanding enterprise.<\/p>\n<p>It doesn\u2019t matter the cause; it\u2019s the result that matters \u2014 fewer companies are trading on the public markets. A lot fewer.<\/p>\n<p>\u201cIn less than two decades, more than half of all publicly traded companies have disappeared,\u201d writes Jason Zweig in <em>The Wall Street Journal.<\/em><\/p>\n<p class=\"centered\"><img decoding=\"async\" class=\"centered aligncenter\" src=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/06\/houdini_chart.png\" alt=\"Stocks pull a houdini\" \/><\/p>\n<p>Back in 1997, there were nearly 7,500 publicly traded stocks. Nowadays, there are fewer than 3,600, according to data from the Center for Research in Security Prices.<\/p>\n<p>The upshot? Most companies are small caps and microcaps, making those the best areas of the market on which to focus for above-average profits.<\/p>\n<p>As it turns out, we just put the finishing touches on a six-year beta test to identify the small-cap and microcaps stocks poised to surge by 1,000% or more.<\/p>\n<p>We\u2019re sharing the results with only a small group of investors before the next opportunity hits on July 25. For full details, <a href=\"https:\/\/pro.agorafinancial.com\/m\/704681\" target=\"_blank\" rel=\"noopener\"><strong>click here<\/strong><\/a>.<\/p>\n<p>Ahead of the tape,<\/p>\n<p>Louis Basenese<br \/>\nChief Investment Strategist, <em>Wall Street Daily<\/em><\/p>\n<p>The post <a href=\"https:\/\/www.wallstreetdaily.com\/2017\/06\/30\/friday-charts-patents-dot-bombs-incredible-shrinking-stock-market\/\" rel=\"nofollow\">Friday Charts: Patents, Dot Bombs and the Incredible Shrinking Stock Market<\/a> appeared first on <a href=\"https:\/\/www.wallstreetdaily.com\" rel=\"nofollow\">Wall Street Daily<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By WallStreetDaily.com The predictive power of patents. Patents enjoy a trickle-down effect. Irrational musings of false prophets. Also recommended: The culmination of my life\u2019s work\u2026 It\u2019s Friday in the Wall Street Daily nation. And that means it\u2019s time to go to the charts! Each week, I embrace the adage that a picture is worth a [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-108270","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/108270","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=108270"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/108270\/revisions"}],"predecessor-version":[{"id":108276,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/108270\/revisions\/108276"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=108270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=108270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=108270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}