Greetings,
The United States: The Atlanta Fed wage tracker shows no evidence of US wages accelerating. Given the tight labor markets, this is not the outcome most economists have been expecting.
Credit: As China spooked the bond markets on Wednesday, investors pulled a massive amount of capital from the largest HY ETF (HYG).
China: As discussed previously, China’s broad credit is decelerating, which will be a drag on economic growth.
Bitcoin: The SEC is very uneasy with cryptocurrency ETFs.
Equity Markets: Investor bullishness is at extreme levels.
Canada: The homeownership rate among young people is significantly higher in Canada than in the US.
Emerging Markets: Fund inflows had boosted EM currencies and domestic bond prices in 2017. The correlation between the two is impressive.
Food for Thought: Prime-age population with tertiary education (college, trade school) by country.
Have a great weekend! The next Brief will be out this coming Tuesday, January 16th.
Edited by Joseph N Cohen
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