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
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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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