Greetings,
The United States: US housing affordability is worsening as a result of higher mortgage rates and housing prices.
And there is a good chance that affordability will deteriorate further. Here is one such scenario.
The Eurozone: The Spanish and Italian bond trading activity spiked in May.
Rates: The market will get a massive injection of additional Treasury securities over the next few years.
Here is the US financing need for 2018 relative to other developed economies (% of GDP).
Equity Markets: Which are the top three US firms by revenue?
Global Developments: Higher corporate debt levels will make rising rates more painful.
Food for Thought: The strongest (table below) and the weakest (second table below) state economies.
Here is the map (1= highest economic ranking).
Edited by Joseph Cohen
To receive the Daily Shot Premium, you need to be a subscriber to The Wall Street Journal. The Daily Shot readers qualify for a special membership offer of $1 for 2 months and can join simply by clicking here.
If you are already a WSJ member, you can sign up for The Daily Shot at our Email Center by clicking here.
The Daily Shot Premium is also available online at DailyShotWSJ.com
If you have any issues at all, please contact a Customer Service representative by calling 1-800-JOURNAL (1-800-568-7625) or sending an email to support@wsj.com.
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.
We would also like to thank the Federal Reserve Bank of St. Louis for the incredible job they have done providing data and graphics to the public. Here is the credit and legal notice related to all FRED charts: FRED® Graphs ©Federal Reserve Bank of St. Louis. All rights reserved. All FRED® Graphs appear courtesy of Federal Reserve Bank of St. Louis. http://research.stlouisfed.org/fred2/
Contact the Daily Shot Editor: Editor@DailyShotLetter.com
