The United States: Despite the manufacturing sector’s relatively small contribution to the (service-focused) US economy, factory earnings make up a significant portion of the total nonfinancial operating profits.
Global Developments: How long do economic expansions last? The analysis below is based on 77 advanced-economy recessions.
China: Despite concerns about a slowdown, portfolio inflows into China remain robust.
The Eurozone: Here is Goldman’s Q3 GDP tracker.
Equities: Merrill Lynch’s private clients’ data still shows near-record low cash holdings.
Credit: The average investment-grade (IG) spread has not contracted as fast as what we see in high-yield (above). One of the reasons is the rising proportion of BBB debt in the IG index. If individual bond spreads stayed the same, the IG index spread would still climb (second chart below) because of the worsening overall “quality.”
Emerging Markets: This scatterplot shows EM private-sector debt vs. government debt (as % of the GDP).
Food for Thought: The square footage of Millennials’ homes:
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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