By Michael McKeown, CFA, CPA - Chief Investment Officer
Just the facts, ma’am.
Below is a collection of charts and data detailing areas affecting the global economy and markets.
According to the World Development Bank’s latest available information, the U.S. tariff on all products is 1.6%. This compares to 3.5% for China. The lowest is Canada which comes in at 0.9%.
Many analysts are discussing the low savings rate for households, which is a meager 2.8%. The lowest savings rate was 1.9% in 2005. The Fed funds rate is expected to rise next week to a range of 1.75% to 2.00%. Prior to the last five recessions, the fed funds rate was above the savings rate.
The price to earnings ratio based on analysts’ expectations for earnings over the next one-year period is below. The number is back to the average of the last five years at just below 17. This is the lowest since July 2016.
Is Amazon a technology company or a retail company? It is classified by Standard & Poor’s in the S&P 500 as a consumer discretionary stock (retail). Many would say it is a technology company. If it were grouped into the technology sector, the total weight of the technology sector within the S&P 500 Index would be about 30%. The technology sector plus Amazon reached 33.4% at the height of the technology bubble in 2000.
This chart storm gives perspective on a few areas we think are interesting today.
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