US households still have an estimated $433 billion in excess savings remaining from the 2020-21 stimulus programs
Source: TME
Hong Kong local bank rate (HIBOR) jumped to its highest level in 16 years
Source: Barchart, Bloomberg
Nothing new, but imagine the huge cash pile starts feeling the equities FOMO...
Source: BofA, TME
US stocks (Russell 3000) less the Mag 7 is up only +2.95% this year. It is thus underperforming cash for the second straight year.
Source: Jim Bianco
Apple cash warchest put into perspective
by Linas Beliūnas
The money market yield spike upends a ton of business models. In this case, landlording in the US
Inded, multifamily cap rate is now BELOW cash rate... Source: Jeff Weniger
This is the first time since 2000 that Treasury Bills are yielding higher than the S&P 500 earnings yield
Even during the 2008 Financial Crisis, cash never yielded higher than S&P 500 earnings. And the gap between the SP500 earnings yield and cash is widening. Competition from cash and bond yields versus stocks keeps rising. For a USD-reference account investor, here's the median Return by Asset Class: 1. High Yield Savings Accounts: 5.5% 2. 6-Month Treasury Bill Yield: 5.0% 3. Investment Property Cap Rate: 4.5% 4. S&P 500 Earnings Yield: 4.2% Bottomm-line: Cash and Treasury Bills are now paying a HIGHER yield than real estate and the S&P 500. In other words, risky assets are paying less than risk-free assets, i.e taking a risk is compensated LESS than just holding cash. Source: The Kobeissi Letter
Cash + Treasury Bills now account for 15% of BoA's Global Wealth AUM, the highest level since the onset of the pandemic and one of the highest levels since the GFC
This could potentially limit the downside risk if that capital rotates back into stocks. Source: Barchart, BofA
