S&P 500 forward PE ratios at~17.4x down from 2020/21 bubble highs just in line with historical average.
But, the problem with lower P/E ratios is that while the P has moved, the E is on thin ice and the cracks are starting to show...
(Source: Callum Thomas)
India expected to overtake China as the most populous country in 2023 with Indian demographics better than Chinese.
Chinese labour have aged out and their costs have got up since 2000s. Now imagine if some part of the manufacturing had to shift to India over this decade, the kind of boom it could create.
Apparently computers got more AUM than humans... These Algos are designed to trigger when markets run into anomalies...
Well Intriguing development anyway, with most likely intriguing impact on market structure/function if at all 2023 had periods of anomalies/volatility which auto trigger these Algos.
(Source: Statista)
Estimates suggest that thus far this month the BoJ has spent JPY 18tn in its defense of the YCC which is now double their increased monthly limit which they set at their December meeting and we are barely past the half way point of January.
Troubling times for the Bank who sooner rather than later will have to abandon the policy. Liquidity in the market is shocking, the repo market in Japan is barely functioning and shorter dated JGBs are yielding higher than the “artificial 10y”. Not a good look all round and one which is unsustainable
Beyond CPI numbers, big mac index tracks real inflation by comparing purchasing power parity between two nations or between two time periods.
So, if this indicator proves correct, wage inflation is here to stay. To add on there are ageing demographics, obesity issues, labor strikes which add to the wage pressure.
The above material is neither investment research, nor investment advice.
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