tintinmelo75 @tintinmelo75: "Continuing with the theme from..."

United Kingdom

Continuing with the theme from yesterday about consumer balance sheet resilience (same picture for corporates): The chart below from Barclays $BCS (Barclays PLC-ADR) show how low debt service payments and other obligations remain low relative to history. Consumers have benefited from ultra low rates to lock in long term mortgages and other debt, so the current high interest rates have little effect on their spending. However, as I argued yesterday, cracks are starting to appear, and the eagle eyed amongst you would have noticed that slight uptick lately in the chart below. The Fed, in my view, should not just focus on inflation when it decides whether or not to cut rates. Getting ahead of the economic slowdown is crucial, or they will end up playing catch up with a recession like they did with inflation when they stuck to their "transitory" narrative for too long. Best, Osman $TLT $BND $QQQ $VOO

5 Mentioned

BCS

Barclays PLC-ADR

TLT

iShares 20+ Year Treasury Bond ETF

BND

Vanguard Total Bond Market ETF

QQQ

Invesco QQQ

VOO

Vanguard S&P 500 ETF