Charts of the Week
A Look At Debt to GDP
August 29, 2018
A comparison of various types of debt to GDP
A comparison of various types of debt to GDP
The number of students majoring in the humanities at U.S. universities is declining at a rapid rate.
The following charts continue to support the idea that the midterms are going to be a lot closer than conventional wisdom suggests.
A long-term look at corporate profits
The divergence between yield curve positioning by ETFs (flatter) and futures (steeper) is nearing an extreme favoring a steeper real yield curve. Additionally, seasonals and and potential for dampening FOMC rate hike timing suggest real and nominal 2-year 10-year spreads should converge.
Emerging market equities' ties to the dollar are at their strongest since August 2016. We still see modest downside risks for the dollar and potential tailwinds for some emerging market sectors.
Today's topics include rising consumer confidence, yield curves and recessions, the stock market, the "fast star", the market vs the Fed, volatility, the U.S. dollar, secular stagnation, corporate debt and the stock market vs pundits.
Cartoons.
Trade-related growth concerns have tightened the ties between industrial metals and risk markets. U.S. high yield bonds and both developed and emerging market equities are likely to tag along if metals rebound.
Industrial metals are expected to continue rebounding after sinking significantly below fair value. Converging economic data is supportive of emerging markets and the commodity trade going into the fall of 2018.
While Washington and cable news continue to obsess over impeachment, financial markets are making new highs and prediction markets are not convinced anything has changed.
Today's topics include the yield curve, the Fed going too far, wage growth, central bank balance sheets, tax cuts, the next financial crisis, Nafta and coding.