Although significant economic measures came out of October such as wage increases and strong U.S. employment, the S&P had the worst returns in October of midterm election years since 1950. . From the Treasury Department, the federal government is projected to borrow a total of $1.3 trillion this year, which is more than double the amount borrowed last year. Did you know U.S. semiconductor firms are heavily exposed to China? A final chart to wrap up this blog shows the most valuable immigrant-founded billion dollar companies. Who is next?
1. To put October in perspective, it was the second worst October since 1950. It was also unusual in that the number of down days dwarfed the number of up days.
Source: WSJ Daily Shot, As of 11/218
2. Tweets aside, the S&P 500 so far has held inside its growth channel. The question is, is this correction over?
Source: Bloomberg, As of 11/2/18
3. Support for the notion that higher rates are here to stay for now...
Source: Financial Times, As of 11/1/18
4. A nice recap of how last year's tax cuts have widened the U.S. Government's budget deficit and thus the Government's financing needs are rising quickly. Higher interest rates will only accelerate this.
Source: U.S Treasury, As of 11/1/18
5. Some good, some bad and some ugly...
Source: WSJ Daily Shot, As of 11/1/18
6. Wages and salaries are (finally) picking up. Will this help spur the U.S. consumer?
Source: FRED, As of 11/1/18
7. U.S. employment continues to impress. Gains were broad throughout the economy.
Source: WSJ Daily Shot, As of 11/2/18
8. Why a trade deal or trade war weighs heavily on the semiconductor industry.
Source: WSJ Daily Shot, As of 11/2/18
9. From a single tweet that a deal is being offered...buy the rumor, sell the news?
Source: WSJ Daily Shot, As of 11/2/18
10. A strong case for increased immigration?
Source: National Foundation for American Policy, As of 11/2/18
Consumer confidence reached the highest level in 18 years, the renminbi is trading at its lowest level in a decade, and more charts on economic anlaysis in our latest chart blog. Catch up below if you missed it!
Disclosure: The charts and info-graphics contained in this blog are typically based on data obtained from 3rd parties and are believed to be accurate. The commentary included is the opinion of the author and subject to change at any time. Any reference to specific securities or investments are for illustrative purposes only and are not intended as investment advice nor are a recommendation to take any action. Individual securities mentioned may be held in client accounts.
