Tuesday, January 19, 2021

Two Charts

 I really like Yardeni Research for its in-depth economic analysis.  You will find the link at the right margin.  Here are two charts I find interesting.

The first one is the yield spread between high yield (aka junk) bonds and Treasurys.  It is a very good indicator of risk appetite and it is currently back to near all time lows, ie risk appetite is very high.


The next chart goes a long way to explain the American middle class malaise.  Manufacturing has been stagnant for 20 years - well-paid jobs on the assembly line are becoming ever scarcer as the population grows.  In my opinion, that’s the source of Trumpism, MAGA and, conversely, the awesome rise of China.



1 comment:

  1. Indeed, and Corporate Dems and Repubs refuse to accept or recognize any blame for it.

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