U.S. Consumer Spending – Comparison of Spending Between March 2021 and February 2020 Travel spending remains low, while goods spending across sectors are well above pre-pandemic levels. Image: BofA Global Research
S&P 500 Performance and Total Public Infrastructure Spending Historically, increases in public infrastructure spending have been countercyclical to the performance of the S&P 500. Image: Morgan Stanley Research
U.S. Consumer Spending – Households Who Received Stimulus Payments and Households Who Did Not U.S. households who received stiumulus payments are feeling more confident about spending. Image: Quill Intelligence, LLC
Effect of Fiscal Spending on Level of GDP The impact of fiscal stimulus on the level of U.S. GDP is expected to peak in Q2 2021 and then decline. Image: Goldman Sachs Global Investment Research
U.S. Government Spending as % of GDP The fastest fiscal contraction looms. Image: BofA Research Investment Committee
IT Spending and Capital Spending Indices Both IT Spending and Capital Spending Indices are sinking deeper into contraction territory. Image: Goldman Sachs Global Investment Research
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