Saving – Household Spending as % of Disposable Income and 10-Year Treasury Yield As the chart shows, lower yields force households to save more (hyper-globalization 2001-2020). This is a vicious cycle, as forced saving depresses demand. Image: BofA Research Investment Committee
S&P 500 at 3000 and U.S. Government Spending as % of GDP According to BofA, maximum government spending, maximum liquidity and the current fiscal stimulus explain why the S&P 500 is at 3,000. Image: BofA Research Investment Committee
Sector Breakdown of 164 Companies that Discussed Suspending Buybacks and/or Dividends Corporate share buybacks are declining amid the coronavirus pandemic. Image: Goldman Sachs Global Investment Research
U.S. Consumer Spending Contribution to YoY U.S. GDP Growth This time will be different, as U.S. consumer spending rarely falls into negative territory even during recessions. Image: BlackRock Investment Institute
Coronavirus – Since the Start of COVID-19, Are You Spending More or Less? Since the start of COVID-19, this survey suggests that Americans are not spending less. Image: Deutsche Bank Research
Aggregated Daily Total Card Spending for U.S. Households That Received CARES Stimulus Payment vs. Those That Did Not This chart suggests that CARES stimulus payments are working, as U.S. households immediately boosted spending. Image: Bank of America Merrill Lynch
U.S. Discretionary Spending and Recessions Because there are few imbalances, Deutsche Bank suggests that the U.S. expansion could continue for many more years. Note: discreationary spending defined as consumer durable goods, plus business capex, plus residential investment (i.e. PCE durables + gross private domestic investment). Image: Deutsche Bank Global Research
U.S. Federal Budget Spending The U.S. federal budget spending is projected to rise in the future. Image: Societe Generale Cross Asset Research
Consumer Spending Contribution to U.S. GDP Consumer spending, which accounts for about 70% of the U.S. economy, is driving GDP growth solo. Image: Oxford Economics
U.S. Consumer Spending, Business Investment and U.S. GDP Right now, consumer spending is the driving force behind the U.S. economy. Image: Financial Times