The United States: US manufacturers are increasingly optimistic. The impending corporate tax cut is expected to give this sector a boost.
And just like commercial builders, manufacturers are having a tough time hiring/retaining quality workers. High healthcare costs are also a problem.
Rates: JP Morgan says that when real fed funds rates hit 1%, we are in the “late cycle” territory
The Eurozone: The implied volatility in the euro hit a multi-year low despite the uncertainty around Italian elections. And there is quite a bit of anti-EU sentiment in Italy (second chart).
Credit: Negative convexity and tight spreads limit the upside in high-yield bonds.
Emerging Markets: The EM non-resident portfolio flows turned negative.
Asia: Singapore has dramatically boosted its national wealth over the past three decades. It has been suggested that the legislators’ incentive compensation was one of the reasons. A 17% corporate tax rate is another.
Energy Markets: Oil implied volatility keeps hitting multi-year lows as downside risks are priced out of the market.
Bitcoin: All of a sudden there is interest in buying futures. What could possibly the reason?
Food for Thought: Compare how much cost/value research you do when buying a car or a TV vs. purchasing health insurance.
How disciplined are you in saving for emergencies or retirement vs. healthcare?
Edited by Joseph N Cohen
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Thanks to Josh Marte (@joshdigga), Matt Garrett (@MattGarrett3), Joseph Cohen (@josephncohen), Ycharts.com, S&P Global, and Moody’s Investors Service for helping with the research for the Daily Shot.
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