S&P 500 Earnings and U.S. Capital Spending

S&P 500 Earnings and U.S. Capital Spending This chart shows that U.S. core capital spending is near a 20-year high. Are fears that U.S. companies may be curtailing spending plans overblown? Keep in mind that the absence of dividend cuts also suggests that U.S. companies are confident in their future earnings potential. Picture source: Leuthold Group

Housing – U.S. Construction Spending and Recessions

Housing – U.S. Construction Spending and Recessions Historically, when the three month moving average turned negative, a U.S. recession occurred within a 12-month period, 7 times out of 9. Picture source: Pictet Asset Management

Fed Rate Cuts Boost Consumer Spending

Fed Rate Cuts Boost Consumer Spending The chart shows real PCE around first Fed rate cut: recession vs. no recession. Fed rate cuts are more effective during a recession. Picture source: Ned Davis Research

Home Builder Sentiment Leads Consumer Spending

Home Builder Sentiment Leads Consumer Spending Interesting chart suggesting that the NAHB housing market index leads the change in consumer spending. The latest reading for July suggests that the outlook for the U.S. economy is expected to slow. Picture source: Dr Thomas Kevin Swift

Total Outlays (Spending) to GDP

Total Outlays (Spending) to GDP This chart shows the percentage share of GDP that the U.S. federal government spends. Picture source: Bianco Research

Consumption Growth and Household Debt

Consumption Growth and Household Debt This chart shows the effects of household debt and suggests that high household debt limits consumer spending. Picture source: Oxford Economics

S&P 500 Use of Cash and Buybacks

S&P 500 Use of Cash and Buybacks This chart shows that buybacks account for the largest share of cash spending by companies in the S&P 500. Picture source: Goldman Sachs Global Investment Research