The United States: The inventories of single-family homes on the market keep dwindling.
Credit: The Volcker Rule has damaged liquidity in the corporate bond market. Providing a loan to a company is fine but holding a corporate bond is “speculation”? Banks are in the business of assuming credit risk, no matter what form it takes.
China: Credit growth slowdown in China is expected to continue.
Bitcoin: This chart compares the daily volatility of Bitcoin to other asset classes.
Equity Markets: Stock dividend yields are diverging from Treasury yields.
Both buyback and dividend yields have been declining just as Treasury yields rise.
Eurozone: The real rate differential between Germany and the US has completely diverged from the euro.
Global Developments: Global consumer spending is expected to remain strong in 2018.
Food for Thought: North and South Korea at night.
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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