us bank deposits have stabilized and risen since the 2023 banking panic, showing that confidence is slowly returning.
Source: BofA, Markets & Mayhem
World debt has crossed $225 TRILLION.
This is unlike anything we’ve seen. Source: Game of Trades
The US is now producing more oil than any country has in history
Source: Michel A.Arouet, Chartr
HARD ASSETS ARE AT LOWEST RELATIVE TO FINANCIAL ASSETS SINCE 1925...
Source: BofA
$SPX/GDP, the 'Buffet' indicator, is back near the 2021 highs
Source: Swordfishvegetable
Everyone is aware of German deindustrialization by now, unfortunately industrial production in other major European countries is not looking much better.
Source: Michel A.Arouet, skhanniche
European junk bond issuance soars to highest since 2021
It is also reflected in European junk bond spreads, which are at their lowest level since January 2021.
The backdrop is a far cry from last September and October, when a slew of junk issuers, pulled bond sales as the rapid increase in interest rates made it tougher for lower-rated companies to borrow.
Source: Bloomberg
Bond markets are getting crushed this week: The bond tracking ETF, $TLT, is down 4% since Friday and on track for its worst week this year.
Why is this happening? - First, CPI inflation data showed that inflation JUMPED to 3.2% and is now up from 2 straight months. - Then, PPI inflation data nearly DOUBLED, rising to 1.6%, further igniting fears of a rebound in inflation. - Interestrate cuts are quickly being removed from market expectations. Source: The Kobeissi Letter
