Category: Blog

Proportion of U.S. Junk Bonds Maturing Within Four Years A third of the $1.2 trillion U.S. junk bonds matures in the next four years. This proportion is highest in decades. Image: Bloomberg

National Debt of the United States from 1934 to 2019 $22 trillion national debt number is huge. As a comparison, that’s more than the GDP of New Zealand, Singapore and Norway combined. Image: howmuch.net

Does the Sharing Economy Really Know How to Share? As Michael A. Gayed pointed out, “Amazing how companies that enable the “sharing economy” make no profit, isn’t it?” The question to ask, does the sharing economy really know how to share? Image: Hedgeye Risk Management LLC

After Yield-Curve Inversions, Bond Yields Show No Really Clear Pattern A yield curve inversion is a necessary condition for a recession, but after yield-curve inversions, bond yields show no really clear pattern. Image: MSCI

Concentration of Stock Ownership by Wealth Bracket As the chart shows, the top 20% wealthiest American households own over 93% of stocks. You may also like “How the Composition of Wealth Changes from the Middle Class to The Ultra Rich?” and “U.S. Net Worth by Wealth Bracket.” Image: Visual Capitalist

Sustainability Generates Better Risk-Adjusted Performance Many large institutional asset owners have embraced sustainable investing. Image: Robeco

After Yield-Curve Inversions, Stocks Show No Clear Pattern A yield curve inversion is a necessary condition for a recession, but after yield-curve inversions, stocks show no clear pattern. Image: MSCI

30-Year Mortgage Rates vs. 10-Year Treasury Yield There is a very high correlation between the 30-year mortgage rates and the 10-year treasury yield 30-year mortgage rates = 1.739 x (10-year treasury yield)² + 0.7755 x (10-year treasury yield) + 0.0227 R² = 0.9787 Image: Calculated Risk

US Long-Term Mortgage Rates Decline: 30-Year Average 4.10% & 15-Year Average 3.57% Why US long-term mortgage rates decline? Mortgage costs are influenced by the 10-year Treasury yield which was lower this week, because the trade war between the United States and China pushes investors moving money from stocks to bonds. Bond yields fall as prices rise.…

Income Shares of the Top 1% in Various Countries The richest 1% of Americans take 20% of national income, but the richest 1% of the Dutch people only 6%. Denmark and the Netherlands are the countries that are the most equal. Image: World Economic Forum

IPOs Tend to Underperform the Market The evidence shows that, despite their higher risk, initial public offerings make poor investments. You may also like “Unicorn IPOs, Are They Good Investments?“