U.S. Private Sector Financial Assets % of GDP

U.S. Private Sector Financial Assets % of GDP The disconnect between the value of U.S. financial assets and GDP gives rise to concerns regarding the growing wealth gap, potential systemic risks, and economic stability, while also presenting policy challenges. Image: BofA Global Investment Strategy

S&P 500 Valuation – Real Market Capitalization to Real GDP Ratio

S&P 500 Valuation – Real Market Capitalization to Real GDP Ratio The inflation-adjusted market capitalization to GDP ratio is a useful metric for assessing the valuation of the U.S. stock market. The current elevated ratio suggests a potential overvaluation. Image: Real Investment Advice

U.S. Government Spending as % of GDP

U.S. Government Spending as % of GDP U.S. government spending as a share of GDP is expected to increase significantly over the next decade. This could potentially have substantial consequences for the long-term stability of the economy. Image: BofA Global Investment Strategy

U.S. Nominal GDP Less Government Budget Deficit

U.S. Nominal GDP Less Government Budget Deficit While fiscal spending in the United States has the potential to boost GDP growth, it is important to carefully consider the long-term implications and trade-offs associated with such policies. Image: Morgan Stanley Wealth Management

U.S. Budget Deficit as a % of GDP

U.S. Budget Deficit as a % of GDP The trend of elevated deficits and increasing debt can have potential long-term implications for the U.S. economy. Image: BofA Global Investment Strategy

U.S. Debt Held by Public as Share of GDP

U.S. Debt Held by Public as Share of GDP The anticipated increase in the U.S. federal debt by 2030 could potentially harm the economy, leading to higher interest payments, constrained resources, and potential limitations on growth and government responsiveness. Image: Deutsche Bank

U.S. Fiscal Stimulus as a Percent of GDP

U.S. Fiscal Stimulus as a Percent of GDP The chart shows the impact of the Trump fiscal stimulus on U.S. economic growth until 2021. You may also like “Despite Full Employment, Why Real GDP Should Stay Above Potential GDP?“  Image: ClearBridge Investments

U.S. Output Gap and Inflation

U.S. Output Gap and Inflation This chart shows that actual U.S. GDP is higher than potential GDP. Historically, a positive output gap leads to inflation. Image: Richardson Wealth