3 Charts Every Investor Must See
Real yields, economic sentiment, bear market
1: Real yields (nominal yields less inflation) around the world are scarce. Unless an investor is forced to (perhaps because it is a regulated entity) the yield provides little incentive to hold most government bonds at the moment. However, government bonds still can provide a safe haven during times of market stress. And with yields so low, duration is high so a little goes a long way.
2: In 2021, Americans increasingly felt the economy was getting worse. Despite booming asset prices and a very strong jobs market, the rising cost of living was creating worry for many.
3: A few large cap companies with disproportionate weights in the indices are keeping index levels afloat. However, if you look beneath the surface, most Nasdaq stocks are in a bear market. Over 2/3s 1/3rd are down over 50%.
So that second chart tells me that people are having trouble servicing housing and car debts at a time when both items are inflating? I don't know why more people don't talk about the third chart.