The U.S. economy is now almost entirely driven by the services sector
The services industry now accounts for ~72% of US GDP, up from ~60% in 1990. By comparison, in the 1950s, services reflected just 47% of the US economy. On the other hand, the manufacturing sector's share in US GDP has declined from ~27% in the 1950s to ~10% currently. Meanwhile, the ISM Manufacturing PMI index has shrunk in 20 of the last 21 months, marking 22 months without two consecutive readings of an expansion, the longest streak since the 1990s. Services are keeping the US economy alive. Source: The Kobeissi Letter, BofA
EBITDA is NOT Free Cash Flow
Source: Brian Feroldi
Top 10 biggest companies in 2024 vs. 2009: What a difference 15 years can make...
Source: Stocktwits, Yahoo Finance
The US Treasury has become a key driver of stocks and other asset markets through its pro-cyclical issuance of debt and the increasing depth and liquidity of repo markets
Writes net treasury issuance leads global equity prices by about 6-9mths due to repo markets. The rise in the volume of collateralized lending, i.e. repo, facilitated by the increase in the supply of USTs is increasingly influential for the behavior of asset prices. Source: HolgerZ, Bloomberg
While Europe is deindustrializing, US industrial renaissance is in full swing
17% annual return anyone? Source: Michel A.Arouet, BofA
Another shocking chart: oil in gold terms at 40 year low
Source: www.zerohedge.com, Bloomberg
The Argentina ETF $ARGT has been the best performing out of 46 country ETFs since 11/17/23 prior to President Milei's election victory as well as year-to-date in 2024
Source: Bespoke
A shocking chart...
'In gold terms, the SP500 is exactly where it was in August 1971. The significance of that date is that it was the moment when President Richard Nixon severed the dollar's link to gold". Source: Bloomberg, Jesse Felder @jessefelder on X
