Trends in reshoring, electrification and AI are propelling US investment renaissance
Source: BNP Paribas Asset Management
Global foreign exchange reserves.
The US dollar still dominates but share has been eroding sligthly Source: Michel A.Arouet
In case you missed it...
Atlanta Fed US Q2 GDP Now latest 4.18%, vs last 3.31%...
Shocking stat of the day by The Kobeissi Letter:
US net interest payments as a percentage of federal revenues are set to reach 34% by 2054. This means that ONE THIRD of all government revenue would be spent only to service the national debt. Over the past 8 years, the percentage has already doubled to ~15% and is at its highest in 3 decades. Meanwhile, nominal annualized interest payments have crossed above $1 trillion for the first time ever. We could see $1.6 trillion in annual interest expense by the end of the year if the Fed leaves rates steady. The US government needs lower interest rates more than anyone - i.e Fiscal policy leads monetary policy. Source: The Kobeissi Letter, Peter G.Peterson
And the Winner is…
Source: Chartr
US Stock Market Capitalization as % of GDP...
1984: 42% 1994: 63% 2004: 93% 2014: 114% 2024: 187% Source: Charlie Bilello
The cost of buying a home in the US rises to $2,750/month, the second highest ever recorded, according to Reventure.
Prior to the pandemic in 2022, the average home in the US would cost $1,400/month. In other words, it is now 100% MORE expensive to buy a home in 2024 compared to 2020. Even at the peak of the 2008 Financial Crisis, the average home payment peaked at $1,550/month. The average US family would need to spend 44% of their PRE-TAX income to buy a home today. Source: The Kobeissi Letter, re.venture
US earnings season UPDATE: 1Q earnings reported so far are +7.0% above expectations. (Clone)
Source: Mike Zaccardi, BofA
