From October onwards, US consumers face a double whammy: student loans + auto loans...
Suspended Student loan payments helped fuel the auto market over the last several years. Auto loans pass Student loans in consumer debt load for the first time in 13yrs, which means consumers face a double-whammy starting in October w/existing auto payments & resumed student loan obligations. Auto loan delinquencies are on the rise and more consumers could fall behind if unemployment increases. Source: Bloomberg, HolgerZ
In the US, the slow motion bank run continue...
Interest Rates on Deposits, by Bank: 1. Wells Fargo: 0.15% 2. Citibank: 0.05% 3. Chase: 0.01% 4. Bank of America: 0.01% 5. US Bank: 0.01% Rates on Alternatives to Bank Deposits: 1. CDs: 5.0% 2. Money Market: 4.5% 3. Treasury Bonds: 4.0% Deposits continue to flow out of banks at a historic pace with $1 trillion+ withdrawn over the last year. The era of "free" money for large US banks is coming to an end. They must raise interest paid on deposits or capital will continue to leave. Source: The Kobeissi Letter, Apollo
Valuation premium of US tech stocks vs. rest of the world is going beyond parabolic...
Source: Topdowncharts, TME
It is official? Total US Debt surpasses $33 trillion for the first time. For those keeping tabs, the US added $1 trillion in debt in just 3 months
Cartoon: Gary Varvel
Corporate profit margins jump to highest level in 73 years 👀
Source: Bloomberg, Barchart
The 10 largest companies in the S&P 500 now make up 34% of the index with an average P/E ratio of 50x
This is the highest percentage since 2001 during the Dot-com bubble. Even in the 2008 bubble, this percentage peaked at ~26%. These same 10 companies have accounted for ~80% of the Nasdaq's entire rally this year. Markets are increasingly held up by a few stocks, particularly in the technology sector. Source: The Kobeissi Letter, Apollo
America's finance in one chart
Source: Michel A.Arouet
A net 51% of US Banks are now tightening their lending standards, the highest since 2020 and at levels that have coincided with recessionary periods in the past
Source: Charlie Bilello
