S&P 500 Cash Balances and Debt Levels

S&P 500 Cash Balances and Debt Levels During the past 12 months, non-financial S&P 500 cash balances have declined by -11% and debt levels have inflected higher by +9%. Image: Goldman Sachs Global Investment Research

S&P 500 – Margin Debt Expansion vs. Contraction

S&P 500 – Margin Debt Expansion vs. Contraction A decline in margin debt has historically signaled impending market turbulence, as margin debt levels often reflect investor confidence and risk appetite. Image: Topdown Charts

Debt-to-GDP and 10-Year Government Bond Yield

Debt-to-GDP and 10-Year Government Bond Yield While it might seem intuitive that higher debt burdens would lead to higher yields due to increased risk, this relationship has not held true in practice. Yields are influenced by multiple economic factors, not just debt levels. Image: BCA Research

U.S. Stock Market – Margin Debt and Free Cash Balances

U.S. Stock Market – Margin Debt and Free Cash Balances The record surge in margin debt reflects heightened risk-taking among investors. If retail enthusiasm persists, this trend may continue, but elevated margin debt levels could amplify market volatility. Image: Real Investment Advice

GWIM Debt Holdings as % of AUM

GWIM Debt Holdings as % of AUM Bank of America’s private clients maintain a low debt allocation of 20%, which remains significantly below the average level. Image: BofA Global Investment Strategy

Global Government Debt

Global Government Debt Global government debt has skyrocketed since the global financial crisis, reaching its highest level in peacetime and posing significant challenges and vulnerabilities for governments and economies worldwide. Image: BofA Global Investment Strategy

U.S. Debt per Capita

U.S. Debt per Capita U.S. debt per capita is surging, reaching the current level of $82,000. Image: BofA Global Research

Ratio of General Government Gross Debt to GDP

Ratio of General Government Gross Debt to GDP At the global level, the measures taken by governments to respond to the impact of the coronavirus crisis amounted to $12 trillion. Image: CNBC