Brave New World: Corporate bond spreads continue to support higher equity markets

Ritesh Jain, a Dalal Street veteran, trend watcher and Global Macro Investor, captures global macro investment opportunities and economic, business and financial trends with charts and commentaries in this space.

Most interesting chart on the planet from Goldman Sachs
This is a 31-year channel line. If this line breaks to the upside, then we are headed to higher US interest rates for next decade

Corporate bond spreads continue to support higher equity markets

The only question is how low is the “low”

IMF raised global growth outlook to 6% in 2021 from 5.5% in Jan and sees 4.4% growth in 2022.

World economic outlook forecast would mark the fastest global growth pace since 1976 led by strong US rebound. IMF has raised the US 2021 growth outlook by 1.3% points to 6.4%

So much money has been pumped into the economy that we are close to overheating

Small and mid-sized US firms say it has never been harder to fill positions.

Wage inflation is just round the corner.

With geopolitical tensions on the rise, will auto sector be next in the firing line?

Electric vehicle batteries are key as China has them sourced.

I believe the US companies will invest massively outside of China to secure supply chains for electric vehicles.

US is the largest agri commodities exporter in the world and below is the US drought monitor