Greetings,
The United States: Here, we have a few additional updates on the housing market.
• This chart shows mortgage originations by loan type.
• The housing sector’s contribution to the GDP remains below the pre-crisis highs (the housing recession began in 2006).
• And here is the housing affordability index by region.
Rates: With cross-currency swap basis spreads blowing out (see chart), Treasury yields are not very attractive after being hedged into euro or yen.
China: Business confidence has been softening.
The Eurozone: The Eurozone is more exposed to higher oil prices than other economies.
Equities: This chart provides the S&P 500 performance attribution. The P/E multiple contraction has offset a significant portion of the increase in earnings expectations this year.
Global Developments: Debt doesn’t buy you as much GDP growth as it once did.
Emerging Markets: Russia’s central bank has exited its holdings of Treasuries (to reduce sanctions risks).
Food for Thought: The most valuable retail brands:
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.
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
