Implied Probability of Fed Funds Rate in December 2020 The market thinks the Fed will cut rates below 1.75% by end of 2020, as the probability of recession increases. Image: J. Safra Sarasin

Trade War – Probability of a US-China Trade Deal The market-implied probability of a US-China trade deal rises to 40%. Image: Goldman Sachs Global Investment Research

China’s Global Acquisitions Global acquisitions by Chinese companies continue to fall, due to tight credit conditions and US-China trade tensions. Image: Financial Times

Brent 5-Year Futures Price This chart shows that long-dated oil prices stayed relatively flat after attacks on Saudi Arabia’s oil infrastructure. Image: Goldman Sachs Global Investment Research

U.S. Long-Term Business Cycle and Recessions This chart suggests that historically, when the U.S. long-term business cycle peaks in the 90th percentile and turns lower, it doesn’t bode well for equities around 4 months later…

The Growth of Passive Investing in the U.S. and Europe Passive ownership represents 16.2% in the U.S. compared to 7.2% in Europe. Image: Goldman Sachs Global Investment Research

Countries Contribution to Total Oil Production The United States accounted for 18% of global oil production in 2018. Image: Visual Capitalist

Annual Buying of Global Equities by Source The only buyer of equities remains corporates, not institutions and households. Image: Bernstein

Oil Market Disruption This chart suggests that “the oil market can cope with a larger Saudi disruption for several months.” Image: Goldman Sachs Global Investment Research

Various Countries’ Shares of Negative-Yielding Debt There are $13.44 trillion in negative-yielding bonds around the globe, as of 9/15/2019. Image: Charles Schwab

Gold and Negative Yielding Debt This chart shows the strong correlation between gold and market capitalization of global negative yielding debt. Negative global yields are a support for gold.