You’ve probably seen this chart going around in recent months. It shows the size of the Fed’s balance sheet and the S&P 500. At first glance, they look perfectly correlated. In fact, the correlation is almost unbelievable:
Category: Chart Of The Day
(Just Charts)
THE RECENT HISTORY OF OIL’S SEASONALITY
US Global Investors recently published a piece on “Why High Oil Prices Are Here To Stay” (certainly worth a read) with a very useful chart on oil’s seasonal tendencies. As [ … ]
THE PERPETUAL WALL OF WORRY
Here’s a nice chart from Fidelity Investments showing the perpetual struggles that the global economy and the equity markets have endured over the last 40 years. It shows that [ … ]
MARGIN SQUEEZE CREATES Q2 DOWNSIDE RISK
With earnings season largely finished we are beginning to generate some solid conclusions. One persistent trend this earnings season has been margin compression across many companies as costs surge. Danske [ … ]
USING THE ISM CYCLE TO INVEST
We’re at an interesting point in the business cycle. There are signs that growth is waning, however, it doesn’t yet appear like a time to panic. The ISM index has [ … ]
STUDENT DEBT HITS ALL-TIME HIGH
Isn’t this a wonderful development? Before they even have the opportunity to find a decent paying job, we are saddling our youth with debt they will spend most of their [ … ]
What is Behavioral Alpha?
Here is an interesting expansion on the idea of Sell in May. Fidelity Investments elaborates by combining several time cycle indicators into one. The result – still Sell in May:
CLEAR CAPITAL: THE HOUSING DOUBLE DIP IS NOW OFFICIAL
Well, this is no surprise to regular readers. We’ve been expecting a double dip in real estate for well over a year now. As soon as the government stepped out [ … ]
RETURNS IN DIFFERENT INFLATION ENVIRONMENTS
Mike Shedlock posted a useful chart showing market returns in different inflation environments (via JP Morgan). Shedlock is quick to note some flaws in the chart (primarily valuation), however, I [ … ]