After-Tax Nonfinancial Corporate Profits as Share of Gross Value Added While U.S. corporate profits fell in Q1 2025 due to higher costs and economic uncertainty, they remain historically high, reflecting both the strength and the vulnerability of large companies in the current economic climate. Image: Bloomberg
Wage Growth vs. Fed Funds Rate When wage growth lags behind the fed funds rate, it is interpreted as a sign that monetary policy is restrictive, as borrowing costs exceed the pace of income growth, potentially dampening consumer spending and economic activity. Image: Yahoo Finance
ISABELNET Cartoon of the Day U.S. tariff policy is causing substantial harm on both the American brand and the broader economy. Rising costs, declining foreign tourism, and boycotts of American products are set to cost the U.S. economy billions of dollars. Have a Great Day, Everyone! 😎
Consensus Estimated Margin Growth Slower economic growth and rising costs are expected to lead to a decline in S&P 500 margin estimates later this year. Image: Goldman Sachs Global Investment Research
ISABELNET Cartoon of the Day It’s inflation day, and bulls are happier than a kid in a candy store—except this time, the candy costs twice as much! Happy “Hump” Day, Everyone! 🐫🐪😎
Active vs. Passive Fund Flows The trend of investors shifting from active to passive funds has accelerated significantly over the past decade, driven by cost considerations, performance outcomes, and evolving market practices. Image: Goldman Sachs Global Investment Research
Gold and U.S. 10-Year Real Rates Gold prices typically exhibit an inverse relationship with U.S. real interest rates, as investors often shift their holdings between gold and interest-bearing assets based on the opportunity cost of owning the precious metal. Image: Gavekal, Macrobond
U.S. Real Prime Rate The 50bps rate cut helps small businesses by lowering borrowing costs. The Fed’s cut aims to stimulate economic activity and support the growth of these essential companies, which play a crucial role in the overall economy. Image: BofA Global Investment Strategy
Passive vs. Active Rolling 6-Month Flows Flows into passive mutual funds and ETFs continue to surpass those into active funds. This trend is driven by factors such as lower costs, strong performance, and the rise of ETFs. Image: Goldman Sachs Global Investment Research
Number of Global Central Bank Hikes and Cuts The current trend of global central banks cutting interest rates at the fastest pace since August 2020 could significantly impact financial markets, borrowing costs, and overall economic activity. Image: Deutsche Bank
S&P 500 EPS Yield – IG Yield vs. TTM Buyback Yield Higher borrowing costs can discourage companies from engaging in stock buybacks. Image: BofA US Equity & Quant Strategy