Global Business Activity Accelerates, New Equity Issuance at Multi-Decade Highs, and a Crypto Check In
May 24, 2021 | FIRESIDE CHARTS
Business activity accelerated yet again this month with Markit Manufacturing PMI coming in above expectations, and the phenomenon isn’t limited to just the U.S… or the manufacturing sector. Services PMI also came in well above consensus both here and abroad as the global recovery gains steam, through price pressures do remain a point of concern. New equity issuance meanwhile has surpassed the dot-com era to hit multi-decade highs as companies raced to cash in on the past year’s bull run and flood of new DIY investors. And as short-term rates continue to hover around zero and the Fed’s balance sheet hits a new record high, the high yield market remained resilient through the recent equity selloff with low rates and reasonable spreads. Crypto—where payments to illicit entities have risen dramatically in recent years—got hit yet again on more talk of increasing regulation and saw Bitcoin tumble to nearly 50% below its peak yesterday. Will even die-hard crypto fans grow exhausted by such dizzying swings?
1. The global manufacturing boom is still accelerating:
Source: IHS Markit, from 5/24/21
2. In Europe both Manufacturing and Services surprised to the upside:
Source: IHS Markit, from 5/24/21
3. New equity supply is at multi-decade highs:
Source: The Daily Shot, from 5/24/21
4. While the Fed minutes talked of tapering, their “real” actions show QE still going full bore, including a new record high for their balance sheet:
Source: The Chart Store, from 5/24/21
5. High yield bonds are signaling “all clear” with low rates and low spreads:
Source: The Chart Store, from 5/24/21
6. Here’s a good look at the commodity rally over the past year:
Source: The Chart Store, from 5/24/21
7. Yet the commodity rally looks exhausted. Is it overdue for a correction?
Source: The Chart Store, from 5/24/21
8. We have a long way to go to reduce fossil fuel consumption:
Source: BP Statistical Review of World Energy, as of 12/31/20
9. While wind and solar are by far the cheapest (pre subsidies!)…
Source: The Daily Shot, from 5/24/21
10. A Monday “OK, Boomer” moment; will governments allow this to accelerate?
Source: The Daily Shot, from 5/24/21
11. Where does your state rank?
Source: The Daily Shot, from 5/24/21
Disclosure: The charts and infographics 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 they a recommendation to take any action. Individual securities mentioned may be held in client accounts. Past performance is no guarantee of future results.