--- title: Fireside Charts: Average Credit Card Rate Exceeds 17%, Debt Distribution by Age, China's Slowdown Hurts Big Business description: Market highlights in charts - what you need to know for your week explained image: https://1782947.hs-sites.com/hubfs/7.10%20chart%202.png --- - [Login](http://investbcm.com/wp-login.php) - [Register](http://etf.investbcm.com/register) [![Beaumont_Logo_4C - powered by AIM](https://1782947.hs-sites.com/hs-fs/hubfs/Beaumont_Logo_4C%20-%20powered%20by%20AIM.png?width=429&height=254&name=Beaumont_Logo_4C%20-%20powered%20by%20AIM.png)](http://investbcm.com/) **A Bird's Eye View Blog** # Fireside Charts: Average Credit Card Rate Exceeds 17%, Debt Distribution by Age, China's Slowdown Hurts Big Business By:[BCM Investment Team](http://1782947.hs-sites.com/author/bcm-investment-team) | Date:Jul10, 2019 | [Category:](http://1782947.hs-sites.com) [Equity](http://1782947.hs-sites.com/topic/equity), [Economics](http://1782947.hs-sites.com/topic/economics), [Market Highlights](http://1782947.hs-sites.com/topic/market-highlights), [Fireside Charts](http://1782947.hs-sites.com/topic/fireside-charts) In 2019 so far, 48% of S&P 500 stocks with dividend yields are greater than the 10-Year U.S. Treasury. Utilities and Real Estate led the sector lineup on a trailing 1-year basis through the start of July. U.S. credit card rates hit the highest level in decades. Does this make sense? More food for thought: what does debt distribution by age look like beyond our assumptions? Student loans are not reserved just for the younger generation. Over in Europe, many junk bonds now have negative yields. Finally, China may be facing a budding credit crisis.    1. With the S&P 500 dividend yield around 2%, it takes exceptionally low interest rates for this to happen...   ![](https://1782947.hs-sites.com/hubfs/7.10%20chart%203.png)  Source: Strategas, as of 7/9/19     2. A nice recap of sector returns over the past year...   ![](https://1782947.hs-sites.com/hubfs/7.10%20chart%205-1.png)  Source: LPL Research, as of 7/10/19     3. I usually heavily discount these types of predictions, but this is from the N.Y. Fed...   ![](https://1782947.hs-sites.com/hubfs/7.10%20chart%201.png) Source: WSJ Daily Shot, as of 7/10/19     4. This is appalling...U.S. credit card rates are now the highest on record, 17%, while interest rates race lower. Those who pay off their balances are being subsidized by those who do not!   ![](https://1782947.hs-sites.com/hubfs/7.10%20chart%202.png)  Source: WSJ Daily Shot, as of 7/10/19     5. Is this why the housing market and U.S. economy are in slow growth mode? How can one afford a mortgage if on graduation, one already has a mortgage-sized student loan debt?   ![](https://1782947.hs-sites.com/hubfs/7.10%20chart%204.png)  Source: Wells Fargo, as of 7/8/19     6. With many trillions of European bonds sporting negative yields, will a rate cut have a meaningful effect or will it be akin to pushing on a string?   ![](https://1782947.hs-sites.com/hubfs/7.10%20chart%208.png) Source: Longview Economics, as of 7/8/19     7. The ultra-low/negative yield environment makes it hard for banks to earn profits. Bloomberg's Laura Benitez recently reported that many junk bonds in Europe now have negative yields!   ![](https://1782947.hs-sites.com/hubfs/7.10%20chart%207-1.png) Source: WSJ Daily Shot, as of 7/8/19     8. Is China's credit expansion becoming a credit crisis?   ![](https://1782947.hs-sites.com/hubfs/7.10%20chart%206.png) Source: Thechartstore.com, as of 7/8/19       With our **2Q19 commentary release **releasing tomorrow, it may be useful to review our previous quarterly commentary. What has changed between now and the first quarter of 2019 which was the best quarter for global equities since 1998 and the 11th best of all time? Find out below and don't forget to come back tomorrow.    [![View Now: BCM 1Q 2019 Market Commentary ](https://no-cache.hubspot.com/cta/default/1782947/66068202-a59e-4933-b2f0-7c153f1244fd.png)](https://cta-redirect.hubspot.com/cta/redirect/1782947/66068202-a59e-4933-b2f0-7c153f1244fd)   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. 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