China’s Higher Bond Yields Buck the Global Trend
Government bond yields have tumbled globally but China’s yields have risen to pre-COVID-19 levels. The RMB hasn’t yet reacted to the favorable rate difference, and we think bond yields are likely to decline moving forward—a favorable landscape for China bonds.
The Latest Look at the Total Return Roller Coaster
Here's an interesting set of charts that will especially resonate with those of us who follow economic and market cycles. Imagine that five years ago you invested $10,000 in the S&P 500. How much would it be worth today, with dividends reinvested but adjusted for inflation? The purchasing power of your investment has increased to $15,352 for an annualized real return of 8.60%.
June Trade Deficit at $50.7B, 7.5% Less Than May
The U.S. International Trade in Goods and Services, also known as the FT-900, is published monthly by the Bureau of Economic Analysis with data going back to 199 and details U.S. exports and imports of goods and services. Today's headline number of -50.7B was lower than the Investing.com forecast of -50.1B.
Second Quarter GDP Reflects Early Pandemic Response
The U.S. economy contracted 9.5% through the second quarter, the worst single-quarter decline in gross domestic product (GDP) since the Commerce Department started tracking it in 1947. It was expected the report would show a dip, but it’s important to recognize what that dip represents.
Income Fund Update: Focused on Finding Opportunities in Today’s Markets
Looking across the global opportunity set, we see potential for attractive yield, though uncertainties surrounding the global recovery suggest this is a time to be cautious.
Market Cap to GDP: An Updated Look at the Buffett Valuation Indicator
With the Q2 GDP Advance Estimate, we now have an updated look at the popular "Buffett Indicator" -- the ratio of corporate equities to GDP. The current reading is 131.4%, up from 123.3% the previous quarter.
Weekly Gasoline Price Update: WTIC Down 1.4%
The price of Regular and Premium are unchanged from last week. According to GasBuddy.com, California has the highest average price for Regular at $3.17 and Mississippi has the cheapest at $1.82. The WTIC end of day spot price closed at 41.04, a decrease of 1.4% from last week.
CPI and PCE: Two Measures of Inflation and Fed Policy
The BEA's Core Personal Consumption Expenditures Chain-type Price Index for June, released Friday, shows that core inflation is below the Federal Reserve's 2% long-term target at 0.95%. The June Core Consumer Price Index release is higher at 1.19%. The Fed is on record as using Core PCE data as its primary inflation gauge.