Newsclips
Market Capitalization as a Percentage of GDP
July 26, 2019
A look at the size of various markets compared to the U.S. economy.
A look at the size of various markets compared to the U.S. economy.
Today's topics include negative interest rates, high yield bond issuance, bond funds on pace for record inflows in 2019, the ECB, homeownership rate falls, why "peak car" is overblown, Einhorn is betting against easy money and Kyle Bass on why a trade deal can't be reached.
The Fed is preparing to cut rates. Since they have not articulated a reason, it seems that the inverted curve and market pricing are driving this decision. If the inverted curve is weighing into the decision, the Fed should continue cutting until the yield curve really steepens. In the past, that has taken several rate cuts, often by more than 100 basis points.
Today's topics include the ECB's meeting, the search for a proper inflation target, the risks in propping up asset prices, economists' wide range of GDP estimates, more evidence of Europe's economy suffering, the Fed and manufacturing, antitrust lawsuits at the disruptors, the Mueller hearing and Judy Shelton's nomination.
The range of Q2 GDP estimates is among the largest since 1997.
With economic data deteriorating in Europe, rates at both the short end and long end have been falling in the EU.
GDP is running above potential, which has been somewhat rare since 1980.
With gold prices up almost 11% so far in 2019, bullish sentiment has finally followed higher.
Newsletter writers and futures positioning offer different views of Treasury bond sentiment.
As yields continue to push lower across the globe, we offer a look at the universe of negative-yielding debt.