Thursday, 8 April 2021
Our chart-pack contains the most relevant macroeconomic graphs in one place, clearly structured and organized for a wide range of economic and financial market indicators and analytical content.
For example, take a look at the chart with the US household sector's equity allocation. It shows that the weight of equities in household assets (as a % of total assets) has surpassed the ‘dotcom bubble’ peak and risen to record-highs. Obviously, this has a lot to do with stock markets (and property prices) at fresh all-time highs. It has created a significant positive wealth effect that puts households in a historically strong position. At the same time, this observation suggests that there is very high bullish consensus. The latter is a contrarian indicator which could indicate that the US stock market has gone too far and that the market is vulnerable to a pullback or larger correction.
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