10-Year Treasury Auction was awarded a 4.68% yield, the highest since 2007 🚨
Source: Barchart
The correlation between US stocks and bonds over the last 3 years (0.73) is the highest on record.
Source: Charlie Bilello
US Federal finances illustrated in one chart
Source: JP Morgan
Over the last 10 years, US Federal Government Tax Revenue has increased 60% while Government Spending has increased 99%.
Does the US need higher taxes or less spending to balance the $2.1 trillion budget deficit? Source: Charlie Bilello
USDollar is now the most overvalued in history according to Bank of America.
Bank of America uses a "behavioral equilibrium exchange model (BEER)", an economic concept used to estimate the equilibrium exchange rate of a currency based on fundamental macroeconomic factors and behavioral relationships. BEER models derive the equilibrium exchange rate from observable economic fundamentals such as Terms of trade, Productivity differentials, Net foreign assets, Interest rate differentials and Trade balances Source: Barchart
A new risk seems to be rising as we start 2025: terrorism on US soil
• NEW ORLEANS TERROR ATTACK: At least 10 people were killed and 35 injured when a driver rammed a pickup truck into a crowd during New Year’s celebrations on Bourbon Street in New Orleans early on Wednesday morning. The FBI is investigating it as an “act of terrorism.” • TESLA CYBERTRUCK EXPLOSION OUTSIDE TRUMP LAS VEGAS HOTEL: Government officials told ABC News that the Tesla Cybertruck explosion on Wednesday outside the Trump Las Vegas hotel in Nevada is being investigated as a "possible act of terror." Source: CNN, ABC, Mario Nawfal on X
US is now 75% of MSCI World Index, a 55 Year High
Source: Datastream, Special Situations Research Newsletter on X
Canadian investor and “Shark Tank” star Kevin O’Leary said Thursday that he wants to help broker a deal with President-elect Donald Trump
that would create some sort of “economic union” between the US and Canada – declaring that at least half of his countrymen would support such a merger. "There's 41 million Canadians sitting on the world's largest amounts of all resources, including the most important, energy and water. Canadians over the holidays have been talking about this. They want to hear more. What this could be is the beginning of an economic union. Think about the power of combining the two economies and erasing the border between Canada and the United States. I like this idea and at least half of Canadians are interested. Nobody wants Trudeau to negotiate this deal. I don't want him doing it for me, so I'm going to go to Mar-a-Lago. I'll start the narrative".
