1971 vs NOW
The average U.S. annual income in 1971 paid off a house in ~2.5 years, could buy 3 new cars in a year, send 4 kids to Harvard in a year and easily afford food, shelter, necessities and entertainment. Does the older generation understand the difficulties the young face today? Source: Gabor Gurbacs
Only 16% of Californians can afford to buy a home, a situation that is unfortunately not unique to the state, but where they are leading the way
Source: Markets & Mayhem, Bloomberg
The comeback of bond vigilantes: US 10y real rates have jumped to 1.77%, almost the highest level since 2009
Source: Bloomberg, HolgerZ
Within US equities, Large-cap technology stocks have corrected the most since the start of August as shown by declines in the "Magnificent 7" and NASDAQ index.
Source: Edward Jones
US money-market assets have reached a new record of $5.5 trillion
US Treasuries are on course for a record year of inflows as investors chasing some of the highest yields in months pile into #cash and #bonds, according to Bank of America Corp. strategists. Cash funds attracted $20.5 billion and investors poured $6.9 billion into bonds in the week through August 9, strategists led by Michael Hartnett wrote in a note, citing data from EPFR Global. Meanwhile, US #stocks had their first outflow in three weeks at $1.6 billion. Flows into Treasuries have reached $127 billion this year, set for an annualized record of $206 billion, BofA said. The buoyant demand shows how alluring fixed-income markets remain even as the bond rally and economic slowdown many were predicting last year has failed to materialize. The yield on 10-year US Treasuries was trading at around 4.09% on Friday, up from a low of around 3.25% in April, and near a 15-year high touched last year. Source: Bloomberg, Lisa Abramowicz
The US just published their budget numbers showing a $221 BILLION deficit in July ALONE
With $276 billion in receipts, the US spent a massive $497 billion last month. Total interest on US debt YTD is now at $726 BILLION. US spending problem is getting worse. Source: The Kobeissi Letter
The decoupling between US money market fund inflows (in green) and bank deposits (in red) continues.
Source: www.zerohedge.com, Bloomberg
Will US inflation move in waves as it did in the 70's?
Source: Bloomberg, www.zerohedge.com
