Subscriber,
Every Monday morning I review the past week’s published charts and graphs. While the data are objective, the conclusions to be drawn are anything but.
Below are three of the most consequential graphs of the past seven days. The first shows that household wealth, which drives much of our consumer economy, is three times as reliant on the stock market as it was in 1990. The second shows interest rates on a pronounced march higher (toldya) which implies lower asset prices, including stock prices. And the last graph shows that, also since 1990, governments are paying out around eight times as much interest annually on their debt, which is also on a steady march upward and also implies higher interest rates which, like I said, implies lower asset prices.
Whether you see a vicious cycle is, of course, up to you.
James
go birds!