Cash now earns more than the S&P 500 by the largest margin in 23 years
Source: TME, Bloomberg
HAVE YOU EVER HEARD ABOUT DE-EUROIZATION ?
Based on SWIFT international payments, we are witnessing 'de-euroization' and not 'dedollarization. The euro's share in SWIFT global payments has dropped to 23% from 38% at the start of the year. Are Russia's SPFS and China's CIPS eating up the euro? Meanwhile, China's share in SWIFT payments reached an all-time high of 3.47% in August. Source: HolgerZ, Bloomberg
Consumer balance sheets are getting stretched
Accumulating debt during a low interest rates environment is one thing. But in light of the continuous surge of the price of money, the US consumer is probably starting to feel the pain Source: Crescat Capital, Bloomberg
The gap between oil and 10 year breakevens is huge...
Does it mean that the market sees higher oil prices as a "growth killer" and thus disinflationary at some stage? Source chart: TME, Refinitiv
GS Financial conditions index is tightening significantly, now at the tightest since November 2022...
This is probably what the FED wants to see...until something breaks... Source: www.zerohedge.com, Bloomberg
The equal-weighted S&P just went red YTD...
Source: Bloomberg, www.zerohedge.com
To put things into perspective: Nasdaq 100 now down ~9% from high, largely in the ‘zone’ of recent NDX drawdown episodes over the last 1 year
Source: Bloomberg, HolgerZ
Apollo just said that bonds are now more attractive than equities...
The spread between corporate bond yields and the S&P 500 earnings yield just hit its highest since 2008, at 1.5%. This spread was negative for nearly 13 years before turning positive in mid-2022. Even in 2020 this spread did not turn positive amidst the global lockdowns. Source: The Kobeissi Letter, Apollo
