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#170 Versatility of AliPay


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Alipay is a super app designed to offer a bouquet of services to bring convenience into your everyday life. Trusted by more than one billion global users, Alipay’s offerings span from allowing its users to make payments (send, receive, and spend money with ease), manage finances, choose a suitable insurance scheme, hail a cab or even order in from a favorite restaurant.


1. Send/Receive money from your peers;
2. Transfer money to friends or split the bill at your favorite restaurant;
3. Card free payment at millions of merchants;
4. Top up your mobile phone and pay your utility bills;
5. Place and track orders in Taobao and TMall;
6. Order food from local restaurants or book a taxi;
7. Manage your money with wealth management products;
8. Free off-site cross-bank transfer / credit card repayment and loans;
9. Scan; Pay – Scan; use the QR code to pay at your local stores;
10. Book Air/Rail/Movie Tickets, at ease;
11. Enjoy hundreds of discounts and promotions from various merchants;
12. Group account facility to manage expenses within family and friends circle;
13. Donate/Participate in walkathons along with your friends in "Sports" service which supports Health-Kit functionality.

Examples of Alipay iPhone displays:



These displays show a variety of options can be used to be a standard method for performing a variety of personal tasks.


#168 Is the US Stock Market 45% Overpriced?


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The Price/Earnings ratio of shares influences the value of US stocks. This determines whether investments could be overpriced or underpriced.
We have collected a series of data from 1970 through 2019 for market capitalization[1], GDP and expected profitability:


Starting from 1970 the Market Cap to GDP ratio continued to be under 100%. The expected profitability was also running at a rate of 10% or better.


In recent history the Market Cap to GDP ratio always exceeded 100% while the expected profitability became negative.

Such disparity can be seen in the differences in the 1970-2019 growth rates. The Market Cap grew much faster at +3721% as compared with the growth of the GDP of only +1946%.

The December 2019 Market Cap exceeded the GDP by $10 Trillion. Since a GDP reflects the earning capacity of the US economy, an estimate of market overpricing can be calculated as a percent share of the GNP, which is $22 Trillion. The overpricing of the stock market is then +45%. In case the US debt may have to be discounted, the suggested overpricing may be too optimistic.

Conclusion:
The high valuation of the Market Cap to the GDP ratio reflects an optimistic view of the worth of the US shares. At present, such views show at least a 45% overpricing of shares.
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[1]  http://www.GuruFocus.com