Finance

38 posts
Re-thinking a standard business chart of stock purchases and sales

Here is a typical business chart. A possible story here: institutional investors are generally buying AMD stock, except in Q3 2018. Let's give this chart a three-step treatment. STEP 1: The Basics Remove the data labels, which stand sideways awkwardly, and are redundant given the axis labels. If the audience includes people who want to take the underlying data, then supply a separate data table. It's easier to copy and...

0 0
Re-thinking a standard business chart of stock purchases and sales

Here is a typical business chart. A possible story here: institutional investors are generally buying AMD stock, except in Q3 2018. Let's give this chart a three-step treatment. STEP 1: The Basics Remove the data labels, which stand sideways awkwardly, and are redundant given the axis labels. If the audience includes people who want to take the underlying data, then supply a separate data table. It's easier to copy and...

0 0
Watching a valiant effort to rescue the pie chart

Today we return to the basics. In a twitter exchange with Dean E., I found the following pie chart in an Atlantic article about who's buying San Francisco real estate: The pie chart is great at one thing, showing how workers in the software industry accounted for half of the real estate purchases. (Dean and I both want to see more details of the analysis as we have many questions...

0 0
Visual Exploration of Unemployment Data

The charts on unemployment data I put up last week are best viewed as a collection.  I have put them up on the (still in beta) JMP Public website. You can find the project here.  I believe that if you make an account, you can grab the underlying dataset.  

0 0
What to make of the historically low unemployment rate

One of the amazing economic stories of the moment is the unemployment rate, which at around 4% has returned to the level last reached during the peak of the tech boom in 2000. The story is much more complex than it seems. I devoted a chapter of Numbersense (link) to explain how the government computes unemployment rates. The most important thing to realize is that an unemployment rate of 4...

0 0
NYT hits the trifecta with this market correction chart

Yesterday, in the front page of the Business section, the New York Times published a pair of charts that perfectly captures the story of the ongoing turbulence in the stock market. Here is the first chart: Most market observers are very concerned about the S&P entering "correction" territory, which the industry arbitrarily defines as a drop of 10% or more from a peak. This corresponds to the shortest line on...

0 0
The merry-go-round of investment bankers

Here is the start of my blog post about the chart I teased the other day:   Today's post deals with the following chart, which appeared recently at Business Insider (hat tip: my sister). It's immediately obvious that this chart requires a heroic effort to decipher. The question shown in the chart title "How many senior investment bankers left their firms?" is the easiest to answer, as the designer places the number...

0 0
Message-first visualization

Sneaky Pete via Twitter sent me the following chart, asking for guidance: This is a pretty standard dataset, frequently used in industry. It shows a breakdown of a company's profit by business unit, here classified by "state". The profit projection for the next year is measured on both absolute dollar terms and year-on-year growth. Since those two metrics have completely different scales, in both magnitude and unit, it is common...

0 0
Plotted performance guaranteed not to predict future performance

Kaiser Fung (Junkcharts, Principal Analytics Prep) finds a chart on French financial instruments conveys a misleading message on relative returns while failing to describe the relative risks.

0 0
The downside of discouraging pie charts

It's no secret most dataviz experts do not like pie charts. Our disdain for pie charts causes people to look for alternatives. Sometimes, the alternative is worse. Witness: This chart comes from the Spring 2018 issue of On Investing, the magazine for Charles Schwab customers. It's not a pie chart. I'm forced to say the pie chart is preferred. The original chart fails the self-sufficiency test. Here is the 2007...

0 0