Belt Tightening

Belt Tightening

  This week’s chart shows the change in the U.S. federal budget going back to 1973. In the middle clip, we have the rolling 12-month total federal budget, with positive values indicating a budget surplus and negative values indicating a budget deficit. The red...
A Rude Awakening

A Rude Awakening

OVERVIEW   The U.S. stock market continued to sell off last week, with the S&P 500 falling 3.29%, the Dow Jones Industrial Average dropping 2.99%, and the Nasdaq Composite plunging 4.21%. Foreign stocks slipped up as well. Developed country stocks fell 3.13%,...
Not So Terrible Twos

Not So Terrible Twos

  The 2-year Treasury note’s yield made the news this week when it rose to roughly 3.5%, its highest level since 2007. This is significant because it is currently one of the highest yielding bonds on the Treasury yield curve, shown as the green line on the chart...
Too Much of a Good Thing

Too Much of a Good Thing

  Volume—or the number of shares traded in the stock market—is an important metric for financial markets. We look at volume because, in general, when a rising stock has a lot of volume, it’s a sign of strength. But when the stock is falling on a lot of volume, it...