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A Bird's Eye View Blog

Fireside Charts 6.15.18 - Bonus Friday!

By:BCM Investment Team | Date:Jun15, 2018 | Category: Equity, Economics, Market Highlights, Fireside Charts

Have you been curious to know who is really funding the federal deficit? And who are the largest holders of U.S. debt? Answers to these and more charts on the crisis in Latin America, U.S. GDP, U.S. Investment grade credit, and the price producer index in today's chart blog.

 

1. As expected, the FED raised rates a seventh time and is now leaning towards more rate increases in 2018 and 2019. 

 

federal funds target rate- upper bound

Source: WSJ Daily Shot; As of 6/13/18

 

 

2. All of these rate increases are coming when U.S. GDP is barely running at 2%.

 

growth rate of gdp

Source: WSJ Daily Shot; As of 6/11/18

 

 

3. Perhaps inflation is on their [FED Governors] minds; note the trend since 2016.

 

us core ppi yoy

Source: WSJ Daily Shot; As of 6/14/18

 

 

4. I wonder how long the current financing trend for all the U.S. debt can/will continue.

 

who is funding the us deficit budget

Source: WSJ Daily Shot,  As of 6/12/18

 

 

5. The world's Central Banks are in very different places. The FED is on its own and again we wonder if they are going too far, too fast.

 

perception of monetary policy standing

Source: WSJ Daily Shot,  As of 6/14/18

 

 

6. Some great info.

 

holders of us debt and us equities

Source: WSJ Daily Shot,  As of 6/13/18

 

 

7. Great info on why housing is so important to our economic health.

 

housing as a percentage of gdp

Source: WSJ Daily Shot,  As of 6/12/18

 

 

8. The crisis is worsening...

 

Argentinian peso

Source: WSJ Daily Shot,  As of 6/12/18

 

 

9. USD strength persists which is effecting many EM and DM currencies.

 

usd/mxn

Source: WSJ Daily Shot,  As of 6/14/18

 

 

10. Here is the EM currency index as a whole...

 

jp morgan emerging market currency index

Source: WSJ Daily Shot,  As of 6/14/18

 

 

11. U.S. Investment grade credit continues to work its way to the lowest credit rating allowed in investment grade

 

 nearly half of investment grade companies are rated bbb

 

Source: WSJ Daily Shot,  As of 6/15/18

 

Do you follow the fixed income benchmark 10- year Treasury? BCM Portfolio Manager Dave Haviland gives his insight as to why it falls shorts and the concerns surrounding an inverted yield curve exclusively for CIO Magazine:

 

CIO Magazine featuring BCM PM Dave Haviland:    A 10- Year Treasury that Can't Break Past the 3% Barrier

 

Disclosure: The charts and info-graphics contained in this blog are typically based on data obtained from 3rd parties and are believed to be accurate. The commentary included is the opinion of the author and subject to change at any time. Any reference to specific securities or investments are for illustrative purposes only and are not intended as investment advice nor are a recommendation to take any action. Individual securities mentioned may be held in client accounts.