The split of U.S. debt

The split of U.S. debt

🇺🇸Who owns all of the US debt?

The US Treasury had $34.8 trillion in outstanding debt at the end of Q2 2024, of which ~33% was held by government funds such as Social Security and the Fed.

By: Financial Networking Group

Election year returns

Election year returns

Presidential election years are always tricky. They’re generally positive, as you can see on the chart below, with only 4 years with negative returns since 1936. But that doesn’t show the full picture as they’re generally volatile with a lot of uncertainty until Election Day.

By: Gustavo A. Cano

Difference from overall annual inflation rate by income group

Difference from overall annual inflation rate by income group

This was super interesting. It's well known that inflation is a typically bigger issue for lower income households than higher-income households. The explanation behind this phenomenon lies in the fact that this group has little savings on average and spends most of the income they generate.

By: Francois Trahan, M2SD

An opportunity for commodities to join the rally

An opportunity for commodities to join the rally

Last week headline CPI inflation confirmed it was in line with market expectations at +2.4% year/year, down from +2.5% y/y in last month's reading. Inflation is continuing to fall in the current cycle, however we think the similarities between the current path and surge inflation of the 1970's are worth paying more attention to.

By: Oliver Loutsenko

Ongoing Sector Rotation

Ongoing Sector Rotation

Sector rotation continues its way. As you can see in the chart below, over the last three months after NVDA results on July, the tech sector has become the laggard, and other sectors such as Utilities and Real Estate have taken the baton and have become the leaders of the S&P500.

By: Gustavo A. Cano

Future Debt Dynamics

Future Debt Dynamics

If the Republicans are going to sweep in November (and even if they don’t), we are likely in for a long regime of fiscal expansion (i.e., sustained large deficits), at a time when the Fed and other central banks are no longer swooping in to buy debt.

By: Jurrien Timmer