Falling Real Yields Allow Zombie Companies to Live On The cost of extended monetary easing: the percentage of zombie companies continues to rise as U.S. 10-year real yields fall. Image: Arbor Research & Trading LLC
Zombies Walking Amongst the Smallest Companies Interesting chart showing the rise of zombie companies and their market capitalization. Image: Arbor Research & Trading LLC
Heightened Correlations to U.S. Treasury Implied Volatility (MOVE) Followed by Higher Yields This chart suggests that balanced portfolios could suffer as U.S. Treasury yields generally rise after heightened correlation. Image: Arbor Research & Trading LLC
Volatility Across All Asset Classes This chart shows the current high correlation of implied volatility across all asset classes to U.S. Treasuries (MOVE). Image: Arbor Research & Trading LLC
VIX and MOVE Correlation Periods of high correlation between VIX and MOVE are not good for balanced portfolios, because diversification is hard to find. Image: Arbor Research & Trading LLC
Demographics – Forecasting U.S. GDP This chart suggests that aging population is weighing down growth. Image: Arbor Research & Trading LLC
Germany – Explaining 10-Year Bund Yields This great chart suggests that demographics explain Germany’s 10-year bund yields. An R² of 0.87 is quite high and significant. Image: Arbor Research & Trading LLC
Demographics – Old Age Dependency Ratio The world’s population is ageing and demographics explain low interest rates. Image: Arbor Research & Trading LLC
Correlation Between the U.S. Economy and the World Economy This chart suggests that the U.S. economy has lagged the world economy since the Great recession. Image: Arbor Research & Trading LLC
USA – Explaining 10-Year Yields This great chart suggests that demographics and globalization explain U.S. 10-year yields. Image: Arbor Research & Trading LLC
Spread Between 10-ROC of S&P 500 and Treasury Bonds This interesting chart shows a 10 trading day rate-of-change (ROC) for the SP500 and for near-month Treasury bond futures prices. A price low is forming now. Image: McClellan Financial Publications, Inc.