Detecting and Measuring Asset Bubbles

Detecting and Measuring Asset Bubbles Detecting and measuring asset bubbles is not always an easy task. This chart puts into perspective the current U.S. households financial assets to GDP and the U.S. federal debt as percentage of GDP.

Corporate Leverage in the U.S.

Corporate Leverage in the U.S. U.S. corporate debt is high. This chart shows that U.S. corporate leverage is close to its previous peak on a net debt to EBITDA. You may also like “U.S. Leveraged Loan Index Rating Breakdown: 2008 vs. 2019.” Image: Credit Suisse Research

Value of U.S. Corporate Bonds by Rating

Value of U.S. Corporate Bonds by Rating Since the Great Recession, the U.S. corporate bond debt rated ‘BBB’ exceeds $3 trillion. If the U.S. economy goes wrong, this is bad news for investors. Image: The Wall Street Journal

Distribution of Student Loan Borrowers by Balance

Distribution of Student Loan Borrowers by Balance Interesting chart showing that most student loan debts range between $10,000 and $25,000. You may also like “America’s Student Debt by State.” Image: ValuePenguin

The Top 10 Risks to the Global Economy

The Top 10 Risks to the Global Economy US-China trade conflict, US corporate debt burden, and emerging-markets crisis are the main global risks according to the Economist Intelligence Unit (EIU). Image: World Economic Forum

Lower Returns for Stocks in the Next 12 Months?

Lower Returns for Stocks in the Next 12 Months? Morgan Stanley’s cyclical indicator is flagging “downturn.” The yield curve’s slope, debt issuance, consumer confidence, economic and financial markets data are aggregated in Morgan Stanley’s cyclical indicator. The entry into the “downturn” phase suggests lower returns for stocks and risky assets in the next 12 months. Image:…

Is Tesla Stock a Good Investment?

Is Tesla Stock a Good Investment? Ouch, Tesla stock is down from $377 to $196 in just 23 weeks. Tesla is not a tech company, but a car company. It isn’t making as much money as expected. The future of Tesla is far from certain, with billions in debt coming due soon. Image: Hedgeye Risk…

U.S. Corporate Stock Buybacks Are Booming Since 2010!

U.S. Corporate Stock Buybacks Are Booming Since 2010! Thanks to tax cuts and low interest rates. What would happen if companies reinvested instead of buying their own shares? Unfortunately, artificially low interest rates are associated with unnecessary debt. See how corporate debt-to-GDP has increased since the Great Recession.

Why Are Dividends and Buybacks Hitting Record Highs?

Why Are Dividends and Buybacks Hitting Record Highs? Corporate stock buybacks and dividends are booming, thanks to the tax cuts and low interest rates.Unfortunately, artificially low interest rates are associated with unnecessary debt and a rise of corporate debt-to-GDP since the Great Recession.