Or select individually:
- Why Real Personal Income May Never Grow Again
- There’s Still A Major Stealth Bear Market In These Chinese Stocks
- Investors Just Started Buying Stock ETFs Like Never Before This Year
- The Global Currency Markets Now Trade The Entire US Economy Every 3.7 Days
- The Scariest Jobs Chart Ever
In his latest note, David Rosenberg of Gluskin-Sheff says you should ignore recent data showing that personal income is growing again.
Because as the chart below shows, more than ever, personal income is comprised of government transfer payments, not actually real income derived from the productive part of society.
But maybe that's no big deal. We're getting older all the time, so naturally things like Social Security are going to comprise more and more of our income.
Obviously the recession has hurt a lot, but due to demographics alone, we could see this chart go up and to the right for a long time.
The Shanghai market has rebounded nicely since its slump early in the year, but if you look beneath the hood it's not all roses.
A new report from Rodman & Renshaw points out a major divergence between big blue chips and small caps, the latter of which are still sharply lower for the year.
The culprit? Increased scrutiny and scepticism.
Remember that shady Chinese travel agency listed on the NYSE? Who knows how many of those companies lurk among the masses of publicly traded Chinese stocks.
U.S. stocks just had their best September performance in 71 years, with the S&P 500 up 8.8% in just the month. Here's a clue to what helped make it happen.
More investor money flowed into ETFs for U.S. stocks during September than during January through August combined. In fact, as of August, there had been a net outflow of -$4.8 billion from U.S. stock ETFs year-to-date. Then just last month nearly $20 billion flowed into U.S. stock ETFs according to National Stock Exchange. Compared to what we had seen all year, it was truly a tidal wave of money, and is shown in chart below on the left.
In addition, inflows into international stock ETFs and bond ETFs continued, as shown in the two other groupings for comparison.
Currency trading is all the rage right now, and many have worried about a currency trading bubble, for good reason. Just look at the volume data below from the Bank for International Settlements.
Total global currency trading volume has increased by 221% since 2001. Nearly four trillion dollars are now traded every day, on average, which is like trading the value of the entire U.S. economy... every 3.7 days.
In addition, some currencies have seen an even sharper volume explosion. The Canadian dollar (CAD) has seen its trading volume with the U.S dollar (USD/CAD) increase by 237% since 2001. The Australian dollar is even hotter. It's trading volume with the US dollar (USD/AUD) has jumped 388% since 2001 and it's one of the most rapidly growing currencies in the world for traders.
What's crazy about the trend below is that if it were to repeat itself over the next decade, then we'd be talking about $12 trillion or more in volume traded each day by 2020. Is this sustainable?
(H/T The Reformed Broker)
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