Global Debt Nears Record

Global Debt Nears Record Global debt hits $246 trillion (or 320% of GDP) and is just $2 trillion shy of all-time high. You may also like “Total Debt by Sector for Developed & Emerging Economies.” Image: International Monetary Fund

Global Earnings since 2006

Global Earnings since 2006 This chart shows global earnings since 2006 (USA, Emerging Markets, Japan and Europe). As Warren Buffett said: “for 240 years, it’s been a terrible mistake to bet against America.” This chart below illustrates it well since 2006. You may also like “Earnings Matter, Over the Long Run.” Source: J.P. Morgan Asset Management

S&P 500 Cash Return Yield by Sector and Region

S&P 500 Cash Return Yield by Sector and Region Currently, the S&P 500 cash return yield (buybacks + dividends) is 5.2%, the highest since 2011. That’s much more than Europe, Japan and emerging markets. Image: Fundstrat Global Advisors, LLC

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

The Trade-Weighted Broad US Dollar Index Hits the Highest Level since 2002

The Trade-Weighted Broad US Dollar Index Hits the Highest Level since 2002 A strong dollar leads to wider trade deficits, and this is a headwind for US exporters. A strong dollar can also hurt emerging markets. The trade-weighted broad US Dollar index is a weighted average of the foreign exchange value of the US dollar against…

Are Value Stocks Cheap or Expensive?

Are Value Stocks Cheap or Expensive? Value stocks usually trade at a 24% discount to the stock market.But as of 02/29/2019, they are trading at 31% discounts in the U.S., 33% discounts in Europe and 34% discounts in emerging countries. Image: GMO

Why We Should Not Be Afraid By China’s Debt?

Why We Should Not Be Afraid By China’s Debt? In China, there is a high level of savings and controls on capital outflows. Currently, most of the Chinese savings are lent or invested in China. So, China’s debt reflects the Chinese savings rate. It would be much more worrying if China’s debt led to external debt,…