In today's chart blog, we dive into the net purchases of stocks from 2014 to 2018. The accelerating pace of stock buybacks has made corporations the largest sole net purchaser of stocks for the last several years. The Empire Manufacturing Index showed factory sentiment lowering by -8.6%. Meanwhile, we are in the midst of the largest increase in commercial debt on record. Between the economic and social turmoil of Venezuela and other Latin American countries, the entire continent is suffering. Lastly, in Mario Draghi's final weeks of his tenure over the European Central Bank, he threatens one or more rate cuts if the European economy does not show signs of improvement soon.
1. So if the stock buybacks significantly slow down...
Source: TheSoundingLine.com, as of 6/18/19
2. Unfortunately the N.Y. FED went from being a big surprise last month to the largest drop ever...
Source: WSJ Daily Shot, as of 6/17/19
3. When rates get exceptionally low, CFOs take advantage...
Source: TheSoundingLine.com, as of 6/18/19
4. Much of the new investment grade corporate debt being issued is barely investment grade...
Source: S&P Dow Jones Indices, as of 6/17/19
5. Yes, this includes Argentina and Venezuela, but the entire continent is getting crushed...
Source: Citi, as of 6/17/19
6. Iron ore has been on a tear, the reasons are outlined below:
Source: WSJ Daily Shot, as of 6/18/19
7. Shale gas has allowed the U.S. to lead the world in LNG production.
Source: WSJ Daily Shot, as of 6/19/19
8. Yesterday ECB Chairman Draghi threatened one or more rate cuts if European inflation and/or growth does not improve soon.
Source: WSJ Daily Shot, as of 6/18/19
9. A nice historical recap of business cycle lengths.
Source: WSJ Daily Shot, as of 6/19/19
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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.
