The United States: The Mortgage Bankers Association showed an increase in mortgage delinquency rates last quarter. Is this hurricane-related?
As a whole, US consumers’ balance sheets remain in good shape. Of course, the trends in the chart below are very different across the income levels.
The debt concern in this economic cycle is in the corporate sector.
The Eurozone: Kept alive by banks, “zombie” firms in Europe create a drag on investment and growth.
Credit: College debt continues to get downgraded. Some suggest that this could become a severe problem if the economy slows (colleges are no longer able to raise tuition at the rate they used to). Will we see colleges consolidating or even going under?
Equity Markets: Realized sector correlations remain remarkably low. Part of the reason is oil decoupling from stocks. Also, the carnage in the retail and consumer staples sectors was taking place just as tech, semiconductors, and homebuilders rallied.
Emerging Markets: The mess in Zimbabwe hasn’t been good for the nation’s stock market. Robert Mugabe “is out” according to his party, but he is not going anywhere according to him. What will the military do?
Alternatives: Uber valuations diverge across major holders.
Food for Thought: Which countries are most affected by terrorism?
Edited by Joseph N Cohen
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