« Market Perspectives » est notre revue mensuelle des marchés. Elle présente de la façon la plus synthétique possible :
- notre analyse des principaux faits marquants et indicateurs macro susceptibles de dessiner les marchés sur le mois.
- notre vision sur les différentes classes d’actifs
Cette revue sera continument enrichie avec nos indicateurs quantitatifs.
La plupart de nos analyses sont disponibles sur www.finlightresearch.com
Our monthly publication “Market Perspectives” presents a synthetic view of all the asset classes we cover.
The report is composed of six sections covering Macro, Equities, FI & credit, FX, Commodities and Alternatives.
Each section is preceded by a summary of our views on the related asset class.
Most of our publications are available on our web site www.finlightresearch.com
The magnificent 7 and equity markets review 11Markets Beyond
2011 was a bumby year for financial markets and 2012 will be no less hectic. However the US economic picture is improving and as written in early 2011 no double dip to be expected but for FED policy folly.
Global imbalances remain, but the eurozone is where lies the deepest problems which have not been properly addressed.
Remain invested in high yielding equities / net cash companies with a strong franchise and look at strong brands in fast growing economies; stay clear from the bond market and financials.
« Market Perspectives » est notre revue mensuelle des marchés. Elle présente de la façon la plus synthétique possible :
- notre analyse des principaux faits marquants et indicateurs macro susceptibles de dessiner les marchés sur le mois.
- notre vision sur les différentes classes d’actifs
Cette revue sera continument enrichie avec nos indicateurs quantitatifs.
La plupart de nos analyses sont disponibles sur www.finlightresearch.com
Our monthly publication “Market Perspectives” presents a synthetic view of all the asset classes we cover.
The report is composed of six sections covering Macro, Equities, FI & credit, FX, Commodities and Alternatives.
Each section is preceded by a summary of our views on the related asset class.
Most of our publications are available on our web site www.finlightresearch.com
The magnificent 7 and equity markets review 11Markets Beyond
2011 was a bumby year for financial markets and 2012 will be no less hectic. However the US economic picture is improving and as written in early 2011 no double dip to be expected but for FED policy folly.
Global imbalances remain, but the eurozone is where lies the deepest problems which have not been properly addressed.
Remain invested in high yielding equities / net cash companies with a strong franchise and look at strong brands in fast growing economies; stay clear from the bond market and financials.
Over the last year or so, there has been much talk about another impending recession and how it could impact channel management. The recession theory is based upon historical trends, which suggest business cycles tend to last around five to seven years each. That means every five to seven years we experience some sort of a recession. Eventually the economy recovers, and then something else happens to triggers another recession.
Skirting the Abyss: From Economic Downturn to Financial Crisis to Long-term M...Llinlithgow Associates
We came right up to the edge of the economic abyss after a year of an accelerating economic downturn and have managed to avoid it but are not out of the woods yet. The risks of a double-dip are growing but the likelihood of a weak recovery and poor job creation is high. A key problem is and was the financial crisis and credit market collapse which has created major lingering problems that will be with us for years. Beyond that a two-decade over-accumulation of debt, drastic declines in Savings and under-Investment have created long-term problems for getting back to sustainable long-term growth. Here we survey the current state of the economy, wade thru the details of the Financial crisis, especially the role of Synthetic Structured Debt and the business performance of the Finance Industry. Then we roll forward to examine the long-term damages created, how we need reduce private debt and what our prospects for reduced long-term growth are. Or, given the decisions to invest in our future and address broader policy problems, how we can return to a path of longer-term high growth and prosperity.
What Is The Business Cycle? Essay
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The Four Stages Of The Business Cycle
Canadas Business Cycle
Stages of a Business Cycle
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Explain The Four Phases Of Business Cycle
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Effect Of The Business Cycle Essay
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The And Third Steps Of The Business Cycle Essay
Business Cycle And Recovery Period Analysis
Business Cycle Theories : A General Comparison
In the marketing world we spend so much time looking for trends and data to explain the world and consumer behavior. But it seems like we often overlook the biggest trend of all - the macro economic cycle.
What if this one cycle is the macro-trend that explains changes in brand value, changes in innovation, and changes in customer values?
The latest quarterly strategic report that gives a summary of top market trends impacting major spend categories, and gives actionable insights to drive strategic value for your organization.
The latest quarterly strategic report that gives a summary of top market trends impacting major spend categories, and gives actionable insights to drive strategic value for your organization.
« Market Perspectives » est notre revue mensuelle des marchés. Elle présente de la façon la plus synthétique possible :
- notre analyse des principaux faits marquants et indicateurs macro susceptibles de dessiner les marchés sur le mois.
- notre vision sur les différentes classes d’actifs
Cette revue sera continument enrichie avec nos indicateurs quantitatifs.
La plupart de nos analyses sont disponibles sur www.finlightresearch.com
Our monthly publication “Market Perspectives” presents a synthetic view of all the asset classes we cover.
The report is composed of six sections covering Macro, Equities, FI & credit, FX, Commodities and Alternatives.
Each section is preceded by a summary of our views on the related asset class.
Most of our publications are available on our web site www.finlightresearch.com
1
Macroeconomics Tutorial Map (provisional)
Topics Lecture (date)
■ Introduction; Scarcity and choice, market system,
positive and normative, alternative systems
1: F (9/01)
■ Introduction: the PPC, benefits of trade
■ Introduction; Four key macroeconomic variables;
definitions; policy goals;
2: F 9/08
■ The circular flow of income; injections and
withdrawals
■ Measuring National Income 3: F 9/15
■The limits of growth, resource constraints
■ The business cycle 4: F 9/22
■ Introduction to Demand and Supply
■ First In-class TEST Receive 1st take-home
assignment
■Unemployment – measures causes and types 5: F 9/29
■ Unemployment II – measures causes and types
28
Macroeconomics Tutorial Map (provisional)
Topics Lecture (date)
■ Aggregate Demand and Aggregate Supply II –
what drives National Income?
6: F 10/06
■ Aggregate Demand, Supply and Inflation I
■ Aggregate Demand, Supply and Inflation II 7: F 10/13
■ Inflation – more on inflation
■ Fiscal Policy 8: F 10/20
■ Fiscal Policy
■ Second In-Class Test Receive 2nd take-home
assignment
■ The importance of money. Monetary Policy 9: F 10/27
■ The banking system and interest rates
■ More on monetary policy 10: F 11/03
■ NO CLASS F 11/10
■ Supply-side policy I
■ More on supply side, and productivity II
■ Key Supply-side policy choices
11: F 11/17
29
2nd
Assignment
Due
1st As’mt
Due
Macroeconomics Tutorial Map (provisional)
Topics Lecture (date)
■ NO CLASS 11/24
■ Third In-class TEST Receive 3rd take-home
assignment
13: F 12/01
■ International Trade - Reasons for Trade
■ Evaluating Trade and Trade Policy
■ Balance of Payments
■ Exchange rates
■ Exchange rates and macroeconomic policy
■ Examining policy choices
14: F 12/08
■ FINAL EXAM 9:30AM F 12/15
30
■ Tutorial map
l I reserve the right to change this schedule at any time. I will
need to get used to the pace of the class. I may include or
exclude topics depending upon how we are progressing
l IN THE EVENT OF A CONFLICT BETWEEN THE SCHEDULE
HERE AND THE SYLLABUS, THE MOST RECENT SLIDE PACK
TAKES PRECEDENT
3rd Assignment
Due
Macroeconomics
LECTURES 3 & 4
2
Macroeconomics
■ Last time
l The role of government in managing the economy and
alternative economic systems
l Introduction to the 4 key economic variables
l The Economic Cycle and Circular Flow of Income
l Injections and withdrawals
l An overview of the relationship between the four key
Macroeconomic objectives
l Measuring National Income – real vs. nominal
■ Today – National Income Accounts
l Why growth?
l Measuring National Income
l The limits of growth, resource constraints
l The business cycle
165
Macroeconomics
Assignment:
Read McC & B Ch 7 for National Income Accounting
(read all of the chapter now if you like. We will deal
with the shortcomings of GDP as a measure next time)
165
ANY QUESTIONS ON THE
READING OR THE SLIDES FROM
LAST LESSON?
Macroeconomics
■ The first of the four key economic goals: Economic growth
l Usual ...
NO1 Uk Divorce problem uk all amil baba in karachi,lahore,pakistan talaq ka m...Amil Baba Dawood bangali
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Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
NO1 Uk Black Magic Specialist Expert In Sahiwal, Okara, Hafizabad, Mandi Bah...Amil Baba Dawood bangali
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#vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore#blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #blackmagicforlove #blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #Amilbabainuk #amilbabainspain #amilbabaindubai #Amilbabainnorway #amilbabainkrachi #amilbabainlahore #amilbabaingujranwalan #amilbabainislamabad
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
7. **Home Ownership:** Explore trends in Latino home ownership. Understand the factors driving home buying decisions, the challenges faced by Latino homeowners, and the impact of home ownership on community stability and economic growth.
This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
1. ....
Laird Research - Economics
October 14, 2015
Where we are now . . . . . . . . . . . . . . . . . . . . . . . . 1
Indicators for US Economy . . . . . . . . . . . . . . . . . . . 3
Global Financial Markets . . . . . . . . . . . . . . . . . . . . 4
US Key Interest Rates . . . . . . . . . . . . . . . . . . . . . . 9
US Inflation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
QE Taper Tracker . . . . . . . . . . . . . . . . . . . . . . . . . 11
Exchange Rates . . . . . . . . . . . . . . . . . . . . . . . . . . 12
US Banking Indicators . . . . . . . . . . . . . . . . . . . . . . 13
US Employment Indicators . . . . . . . . . . . . . . . . . . . 14
US Business Activity Indicators . . . . . . . . . . . . . . . . 16
US Consumption Indicators . . . . . . . . . . . . . . . . . . 17
US Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Global Business Indicators . . . . . . . . . . . . . . . . . . . 20
Canadian Indicators . . . . . . . . . . . . . . . . . . . . . . . 23
European Indicators . . . . . . . . . . . . . . . . . . . . . . . 25
Chinese Indicators . . . . . . . . . . . . . . . . . . . . . . . . 27
Global Climate Change . . . . . . . . . . . . . . . . . . . . . 28
Where we are now
Welcome to the Laird Report. We present a selection of economic
data from around the world to help figure where we are today.
The economy and the stock market are related but certainly not
“the same”. Although everything seems to move together these days,
its important to step back and consider one of the biggest divergences in
the world right now - the stunning recovery of financial markets since
the 2008 crisis versus the very slow, plodding recovery of consumers
(and I’m in particular looking at the slow recovery of unemployment
metrics in the US and the EU).
The estimates for US corporate earnings (using the S&P 500 as a
proxy) show declining growth rates. Part of this can be blamed on the
strengthening US dollar hurting the value of foreign income, but part is
due to demand which is currently at low levels and not increasing “fast
enough”. Unemployment has been slowly but steadily improving over
time, especially in the US, to the point where the past year has seen un-
ambiguous improvements in all employment metrics. Initial claims are
at historic lows and the unemployment rate is well below fed targets.
In the press, there’s a lot of concern over corporate profits stagnat-
ing in the US and Canada, but its important to consider how historically
high profit margins have become. Those margins can be attributed to
very low interest rates, but also to productivity improvements – mea-
sured as the amount of output per person. Much of the productivity
improvements have stayed on the corporate bottom lines with little
trickling down to workers/consumers as higher wages (note: consumers
account for over 60% of US GDP). Hourly wages have stagnated for a
long time - especially on a real (inflation adjusted) basis. As the US
gets close to full employment, there is usally pressure for higher wages,
and as talked about in previous reports, some of that is being seen.
Here’s one version of the economy’s recent history: businesses
needed to tighten their belt and restructure in 2008-2010 to survive,
and this hit workers hard due to layoffs. Businesses saw an immedi-
ate improvement in bottom lines when the economy stopped shrinking
2. and this is very slowly trickling down to workers. However, at a certain
point businesses were running too tight on labour and need to hire more
people, but this wasn’t inflationary because there was a large pool of
unemployed to draw on. As businesses hire more in the future, hourly
wages should increase. Luckily, inflation hasn’t taken off yet because
raw material prices have stayed low (looking at you, oil), which has
kept interest rates low. On the other hand, consumers/workers are
only now seeing low unemployment (which probably helped account
for consumer sentiment increases in the US earlier this year) but the
rest of the world is still sputtering with China slowing way down - that
makes businesses more cautious, which puts a damper on consumers
because they are a sensitive lot - and now consumer sentiment in the
US is going down again.
In theory, full employment would also imply capacity utilization to
be at some kind of global high - but it hasnt recovered to pre-recession
levels (so I guess there’s some holes in the story or else there is a ways
to go before wage inflation becomes a thing). In short, there’s a strange
dynamic of the consumer ascending but business peaking and poten-
tially declining – and there is an obvious interaction between the two.
No idea which one wins this tug of war. Note that the government is a
spoiler in all this as austerity measures are a net drag on the economy
while programs like TARP were boosts while they lasted.
This is mainly a US story - Europe certainly has a huge pool of un-
employed and decent labour mobility which would take wage inflation-
ary pressures down locally as they can draw on workers from outside
individual countries). I would assume this means it is taking longer
to play out - note that inflation is still very low in Europe. Pricing
pressure upwards is a good indication that things are improving. If
anything, there is a lack of demand in the EU, which is keeping prices
down. Unemployment in the EU is still simply too high and they can’t
export enough to make up for low demand at home.
China is still a mystery in its performance - partially because it
doesn’t data that we can trust (though many would argue the same
for, say, US inflation data) and partially because there are some big
shifts in the structure of its economy. There was a lot of upset earlier
when Caterpillar talked about plummeting sales in the Asia/Pacific re-
gion. Same with Alcoa talking about lower heavy industry demand.
Oddly enough, consumer spending in China seems to be holding up -
Nike saw sales up 36% in China in their 3rd quarter. In aggregate,
Chinese imports declined in September by 20.4% from a year ago - if
most imports are skewed to capital equipment (no thanks we’re full)
and basic commodities (oil’s having a 50% off sale!) then this makes
sense.
The tug of war in China is whether domestic consumer demand
can make up for lower business investment - this is a major multiyear
transition. The evidence on GDP growth is that consumer demand is
lagging behind investment for now. Note as well that exports are also
down, and given China is a major source of finished consumer goods,
that implies global demand is still down (though a stronger US dollar
which makes Chinese goods cheaper also helps US domestic demand
while still making exports in China look lower).
The transition from export focus to a more balanced local demand
focus was a clear policy decision by China and despite fits and starts
(tough to make the whole economy work to your schedule even in a
planned economy) it seems to be following the plan.
Formatting Notes The grey bars on the various charts are OECD
recession indicators for the respective countries. In many cases, the last
available value is listed, along with the median value (measured from
as much of the data series as is available).
Subscription Info For a FREE subscription to this monthly re-
port, please visit sign up at our website: www.lairdresearch.com
Laird Research, October 14, 2015
www.lairdresearch.com October 14, 2015 Page 2
3. Indicators for US Economy
Leading indicators are indicators that usually change before the
economy as a whole changes. They are useful as short-term predictors
of the economy. Our list includes the Philly Fed’s Leading Index which
summarizes multiple indicators; initial jobless claims and hours worked
(both decrease quickly when demand for employee services drops and
vice versa); purchasing manager indicies; new order and housing per-
mit indicies; delivery timings (longer timings imply more demand in
the system) and consumer sentiment (how consumers are feeling about
their own financial situation and the economy in general). Red dots
are points where a new trend has started.
Leading Index for the US
Index:Est.6monthgrowth
−3−10123
median: 1.53
Aug 2015: 1.64
Growth
Contraction
Initial Unemployment Claims
1000'sofClaimsperWeek
200400600
median: 349.75
Oct 2015: 267.50
Manufacturing Ave. Weekly Hours Worked
Hours
394041424344
median: 40.60
Sep 2015: 41.60
ISM Manfacturing − PMI
Index:SteadyState=50
3040506070
median: 53.40
Sep 2015: 50.20
expanding economy
contracting economy
Manufacturers' New Orders: Durable Goods
BillionsofDollars
150200250300
median: 184.06
Aug 2015: 235.52
Index of Truck Tonnage
TruckTonnageIndex
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
100120
median: 112.95
Jun 2015: 132.10
Capex (ex. Defence & Planes)
BillionsofDollars
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
40506070
median: 57.79
Aug 2015: 69.31
Chicago Fed National Activity Index
IndexValue
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
−4−202
median: 0.08
Aug 2015: −0.41
U. Michigan: Consumer Sentiment
Index1966Q1=100
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
507090110
median: 88.40
Sep 2015: 87.20
www.lairdresearch.com October 14, 2015 Page 3
4. Global Financial Markets
Global Stock Market Returns
Country Index Name Close Date Current
Value
Weekly
Change
Monthly
Change
3 month
Change
12
month
Change
Corr to
S&P500
Corr to
TSX
North America
USA S&P 500 Oct 13 2,003.7 1.2% I 2.6% I -4.6% J 6.9% I 1.00 0.82
USA NASDAQ Composite Oct 13 4,796.6 1.0% I -0.2% J -5.4% J 13.8% I 0.97 0.80
USA Wilshire 5000 Total Market Oct 13 21,001.6 1.1% I 1.9% I -5.4% J 6.9% I 1.00 0.84
Canada S&P TSX Oct 13 13,844.7 1.4% I 3.7% I -4.7% J -1.4% J 0.82 1.00
Europe and Russia
France CAC 40 Oct 13 4,643.4 -0.4% J 2.8% I -7.1% J 13.8% I 0.58 0.67
Germany DAX Oct 13 10,032.8 1.3% I -1.0% J -12.6% J 13.8% I 0.57 0.65
United Kingdom FTSE Oct 13 6,342.3 0.3% I 4.2% I -5.9% J -0.4% J 0.59 0.68
Russia Market Vectors Russia ETF Oct 13 16.8 2.1% I 5.0% I -6.3% J -18.4% J 0.68 0.73
Asia
Taiwan TSEC weighted index Oct 13 8,567.9 2.1% I 3.1% I -5.2% J -1.6% J 0.39 0.49
China Shanghai Composite Index Oct 12 3,287.7 0.0% K 5.5% I -17.2% J 39.0% I 0.32 0.37
Japan NIKKEI 225 Oct 13 18,234.7 0.3% I 1.5% I -9.2% J 19.2% I 0.43 0.42
Hong Kong Hang Seng Oct 13 22,600.5 3.5% I 4.8% I -10.4% J -2.3% J 0.40 0.48
Korea Kospi Oct 13 2,019.1 1.4% I 4.5% I -2.1% J 4.8% I 0.40 0.45
South Asia and Austrailia
India Bombay Stock Exchange Oct 13 26,846.5 -0.3% J 3.8% I -4.0% J 1.8% I 0.46 0.55
Indonesia Jakarta Oct 13 4,483.1 0.8% I 2.1% I -8.4% J -8.8% J 0.42 0.51
Malaysia FTSE Bursa Malaysia KLCI Oct 13 1,711.1 2.9% I 4.4% I -0.3% J -4.8% J 0.28 0.38
Australia All Ordinaries Oct 13 5,234.6 0.7% I 2.2% I -4.1% J 1.6% I 0.31 0.37
New Zealand NZX 50 Index Gross Oct 13 5,702.8 0.6% I 0.7% I -0.1% J 10.3% I 0.10 0.19
South America
Brasil IBOVESPA Oct 13 47,363.0 -0.8% J 0.2% I -10.8% J -18.3% J 0.68 0.67
Argentina MERVAL Buenos Aires Oct 13 10,762.5 0.6% I 0.6% I -9.9% J 8.8% I 0.63 0.66
Mexico Bolsa index Oct 13 44,318.2 1.7% I 3.5% I -1.5% J 2.9% I 0.71 0.74
MENA and Africa
Egypt Market Vectors Egypt ETF Oct 13 41.7 6.1% I 5.0% I -7.2% J -35.2% J 0.38 0.36
(Gulf States) Market Vectors Gulf States ETF Oct 13 25.3 -0.1% J 2.6% I -6.5% J -17.8% J 0.44 0.55
South Africa iShares MSCI South Africa Index Oct 13 57.7 -0.2% J 5.0% I -10.3% J -7.0% J 0.69 0.62
(Africa) Market Vectors Africa ETF Oct 13 21.0 1.8% I 4.4% I -9.7% J -26.9% J 0.61 0.59
Commodities
USD Spot Oil West Texas Int. Oct 05 $46.3 4.2% I 0.8% I -11.8% J -48.8% J 0.41 0.55
USD Gold LME Spot Oct 13 $1,154.4 1.5% I 4.2% I -0.0% J -6.0% J -0.16 -0.06
Note: Correlations are based on daily arithmetic returns for the most recent 100 trading days.
www.lairdresearch.com October 14, 2015 Page 4
5. S&P 500 Composite Index
The S&P 500 Composite Index is widely regarded as the best single
gauge of the large cap U.S. equities market. A key figure is the valua-
tion level of the S&P500 as measured by the Price/Earnings ratio. We
present two versions: (1) a 12-month trailing earnings version which
reflects current earnings but is skewed by short term variances and (2)
a cyclically adjusted version which looks at the inflation adjusted earn-
ings over a 10 year period (i.e. at least one business cycle). Forecasted
earnings numbers are estimates provided by S&P.
S&P 500 Profit Margins and Overall Corporate Profit Margins (Trailing 12 months)
Percent
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
0
2
4
6
8
10
12
14
0
2
4
6
8
10
12
14
Percent
Total Corporate Profits (% of GDP) − median: 6.2%, Q2/15: 10.3%
Net Profit Margin (S&P 500 Earnings / Revenue) − median: 6.6%, Q3/15: 8.2%
S&P Quarterly Earnings (USD$ Inflation Adjusted to current prices)
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
−5.00
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
−5.00
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
Tech Bubble
Japanese Asset Bubble
House BubbleAsian Financial Crisis
US Financial Crisis
Eurozone crisis
Oil Crisis I Oil Crisis II
Gulf War
Savings and Loans Crisis
High Inflation Period
Afganistan/Iraq WarVietnam War
Reported Earnings
Operating Earnings
Trailing P/E Ratios for S&P500
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
0
10
20
30
40
50
0
10
20
30
40
50
Multiple
Multiple
12−month P/E ( median = 17.4, Oct = 20.9)
10−year CAPE ( median = 19.5, Oct = 24.4)
www.lairdresearch.com October 14, 2015 Page 5
6. S&P 500 Composite Distributions
This is a view of the price performance of the S&P 500 index com-
panies. The area of each box is proportional to the company’s market
cap, while the colour is determined by the percentage change in price
over the past month. In addition, companies are sorted according to
their industry group.
AAPL
+3.8%
GOOG
+9.1%
MSFT
+12%
FB
+7.9%
V
+8.8%
ORCL
+5%
INTC
+15%
IBM
+4.9%
CSCO
+11%
MA
+7.7%
QCOM
+4.5%
ACN
HPQ TXN
CRM
ADP
YHOO
BRCM
EBAY
INTU
TEL
FISV
EA
FIS
MU
ADI
ADS
ALTR
MSI RHT
WU
BRK−A
+0.22%
WFC
+1.7%
JPM
+0.16%
BAC
−0.064%
C
+0.53%
GS
AXP AIG
USB
MS
SPG
MET BLK
PNC BK
COF AMT
PSA
PRU
ACE
TRV
CME
MMC
CB STT
CCI
BBT
AFL
AON
ALL
HCN
DFS
GGP
AVB
BEN
PLD
STI
HIG
VNO
PFG
IVZ
HST
L RF
SLG
O
XL
JNJ
+3.6%
PFE
+5.2%
GILD
−3.3%
MRK
−5%
UNH
+11%
AMGN
AGN
−11%
BMY MDT CELG
ABBV
−11%
LLY
BIIB
ABT
ESRX
REGN
TMO
AET
SYK
ALXN
CI
BDX VRTX
BXLT
MYL
ABC
ZBH
STJ
BAX
ISRG
EW
ENDP A
LH
AMZN
+11%
DIS
+7.1%
HD
+7.6%
CMCSA
+9.3%
NKE
+16%
MCD
+11%
SBUX
PCLN
+11%
LOW
+7.7%
TWX
F
FOX TWC GM
TGT TJX CCL
VFC
JCI
LB
ORLY
CMG
DLPH
AZO RCL
DG M
MHK
AAP
JWN
BBY
HOT
HBI
DHI
RL
GT
AN
WMT
+4.6%
PG
+7.6%
KO
+8.4%
PEP
+8%
PM
+8.5%
CVS
MO
+12%
WBA
−1%
KHC
+4.6%
COST RAI
CL
+7.7%
KMB
KR GIS
EL
ADM
STZ
K
SYY
TSN
GE
+17%
BA MMM
UPS
+8.5%
UTX
+5.1%
UNP
+12%
HON
LMT DHR
GD
FDX
CAT
DAL
RTN
NOC ITW PCP
EMR
AAL
CSX
LUV
DE
ETN
NSC
WM
UAL
CMI
ROP
APH
TYC PH
IR
VRSK
AME
LLL
XOM
+9.8%
CVX
+13%
SLB
−1%
KMI
COP
+15%
OXY
+5%
EOG PSX
APC
VLO
MPC
BHI
PXD
SE
DVN
HES
APA
NOV
DUK NEE
D SO
AEP
EXC
PCG
SRE
PPL
PEG
EIX
ED
ES
DTE
FE
ETR
NI
DOW
DD
LYB
MON
ECL
PX APD
PPG
SHW
IP
WRK
FCX
AA
NUE
CF
IFF
T
+2.8%
VZ
−1.2%
LVLT CTL
Information Technology Financials
Health Care
Consumer Discretionary
Consumer Staples
Industrials
Energy Utilities Materials
Telecommunications
Services
<−25.0% −20.0% −15.0% −10.0% −5.0% 0.0% 5.0% 10.0% 15.0% 20.0% >25.0%
% Change in Price from Sep 1, 2015 to Oct 13, 2015
Average Median Median Median
Sector Change P/Sales P/Book P/E
Utilities 7.8% I 1.6 1.7 18.4
Information Technology 7.7% I 3.6 4.4 24.7
Industrials 7.1% I 1.5 3.6 18.6
Consumer Discretionary 7.1% I 1.6 3.7 20.5
Consumer Staples 7.0% I 2.2 5.8 26.8
Average Median Median Median
Sector Change P/Sales P/Book P/E
Energy 6.7% I 1.5 1.8 19.3
Materials 5.0% I 1.3 3.8 20.5
Financials 2.4% I 2.8 1.6 16.4
Telecommunications Services 1.1% I 1.4 2.0 26.7
Health Care -0.7% J 3.1 3.6 25.8
www.lairdresearch.com October 14, 2015 Page 6
7. US Equity Valuations
A key valuation metric is Tobin’s q: the ratio between the market
value of the entire US stock market versus US net assets at replacement
cost (ie. what you pay versus what you get). Warren Buffet famously
follows stock market value as a percentage of GNP, which is highly
(93%) correlated to Tobin’s q.
We can also take the reverse approach: assume the market has
valuations correct, we can determine the required returns of future es-
timated earnings. These are quoted for both debt (using BAA rated
securities as a proxy) and equity premiums above the risk free rate (10
year US Treasuries). These figures are alternate approaches to under-
standing the current market sentiment - higher premiums indicate a
demand for greater returns for the same price and show the level of
risk-aversion in the market.
Tobin's q (Market Equity / Market Net Worth) and S&P500 Price/Sales
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
0.25
0.50
0.75
1.00
1.25
1.50
1.75
0.25
0.50
0.75
1.00
1.25
1.50
1.75
Buying assets at a discount
Paying up for growth
Tobin Q (median = 0.76, Mar = 1.06)
S&P 500 Price/Sales (median = 1.35, Sep = 1.71)
Equity and Debt Risk Premiums: Spread vs. Risk Free Rate (10−year US Treasury)
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
Implied Equity Premium (median = 4.2%, Sep = 4.9%)
Debt (BAA) Premium (median = 2.0%, Sep = 3.3%)
www.lairdresearch.com October 14, 2015 Page 7
8. US Mutual Fund Flows
Fund flows describe the net investments in equity and bond mutual
funds in the US market, as described in ICI’s “Trends in Mutual Fund
Investing” report. Note however that this is only part of the story as
it does not include ETF fund flows - part of the changes are investors
entering or leaving the market, and part is investors shifting to ETF’s
from mutual funds.
US Net New Investment Cash Flow to Mutual Funds
US$billions(monthly)
2007 2008 2009 2010 2011 2012 2013 2014 2015
−40−2002040
Domestic Equity
World Equity
Taxable Bonds
Municipal Bonds
US Net New Investment Cash Flow to Mutual Funds
US$billions(Monthly)
2007 2008 2009 2010 2011 2012 2013 2014 2015
−60−40−200204060
Flows to Equity
Flows to Bonds
Net Market Flows
www.lairdresearch.com October 14, 2015 Page 8
9. US Key Interest Rates
Interest rates are often leading indicators of stress in the financial
system. The yield curve show the time structure of interest rates on
government bonds - Usually the longer the time the loan is outstanding,
the higher the rate charged. However if a recession is expected, then
the fed cuts rates and this relationship is inverted - leading to negative
spreads where short term rates are higher than long term rates.
Almost every recession in the past century has been preceeded by an
inversion - though not every inversion preceeds a recession (just most
of the time).
For corporate bonds, the key issue is the spread between bond rates
(i.e. AAA vs BAA bonds) or between government loans (LIBOR vs
Fedfunds - the infamous “TED Spread”). Here a spike correlates to an
aversion to risk, which is an indication that something bad is happen-
ing.
US Treasury Yield Curves
ForwardInstantaneousRates(%)
14
15
16
17
18
19
20
21
22
23
24
25
0.0
0.5
1.0
1.5
2.0
2.5
0.0
0.5
1.0
1.5
2.0
2.5Oct 9, 2015 (Today)
Sep 9, 2015 (1 mo ago)
Jul 9, 2015 (3 mo ago)
09 Oct 2014 (1 yr ago)
3 Month & 10 Yr Treasury Yields
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
0%
1%
2%
3%
4%
5%
6%
7%
0%
1%
2%
3%
4%
5%
6%
7%
10 Yr Treasury
3 Mo Treasury
Spread
AAA vs. BAA Bond Spreads
4%
5%
6%
7%
8%
9%
4%
5%
6%
7%
8%
9%
Percent
AAA
BAA
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
median: 91.00
Oct 2015: 137.00
0
100
200
300
0
100
200
300
Spread(bps)
LIBOR vs. Fedfunds Rate
0%
1%
2%
3%
4%
5%
6%
7%
0%
1%
2%
3%
4%
5%
6%
7%
Percent
3 mos t−bill
LIBOR
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
median: 36.38
Oct 2015: 30.86
0
100
200
300
0
100
200
300
Spread(bps)
www.lairdresearch.com October 14, 2015 Page 9
10. US Inflation
Generally, the US Fed tries to anchor long run inflation expectations
to approximately 2%. Inflation can be measured with the Consumer
Price Index (CPI) or the Personal Consumption Expenditures (PCE)
index.
In both cases, it makes sense to exclude items that vary quickly like
Food and Energy to get a clearer picture of inflation (usually called
Core Inflation). The Fed seems to think PCI more accurately reflects
the entire basket of goods and services that households purchase.
Finally, we can make a reasonable estimate of future inflation ex-
pectations by comparing real return and normal bonds to construct an
imputed forward inflation expectation. The 5y5y chart shows expected
5 year inflation rates at a point 5 years in the future. Neat trick that.
Consumer Price Index
Percent
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
−1%
0%
1%
2%
3%
4%
5%
6%
−1%
0%
1%
2%
3%
4%
5%
6%
US Inflation Rate YoY% (Aug = 0.22%)
US Inflation ex Food & Energy YoY% (Aug = 1.8%)
Personal Consumption Expenditures
Percent(YearoverYear)
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
−10123456
PCE Inflation Rate YoY% (Aug = 0.33%)
PCE Core Inflation YoY% (Aug = 1.3%)
5−Year, 5−Year Forward Inflation Expectation Rate
Percent
07
08
09
10
11
12
13
14
15
16
17
18
19
20
−10123456
5 year forward Inflation Expectation
Actual 5yr Inflation (CPI measure)
Actual 5yr Inflation (PCE Measure)
www.lairdresearch.com October 14, 2015 Page 10
11. QE Taper Tracker
The US has been using the program of Quantitative Easing to pro-
vide monetary stimulous to its economy. The Fed has engaged in a
series of programs (QE1, QE2 & QE3) designed to drive down long
term rates and improve liquidity though purchases of treasuries, mor-
gage backed securites and other debt from banks.
The higher demand for long maturity securities would drive up their
price, but as these securities have a fixed coupon, their yield would be
decreased (yield ≈ coupon / price) thus driving down long term rates.
In 2011-2012, “Operation Twist” attempted to reduce rates without
increasing liquidity. They went back to QE in 2013.
The Fed chairman suggested in June 2013 the economy was recover-
ing enough that they could start slowing down purchases (“tapering”).
The Fed backed off after a brief market panic. The Fed announced in
Dec 2013 that it was starting the taper, a decision partly driven by
seeing key targets of inflation around 2% and unemployment being less
than 6.5%. In Oct 2014, they announced the end of purchases.
QE Asset Purchases to Date (Treasury & Mortgage Backed Securities)
Trillions
0.0
0.5
1.0
1.5
2.0
2.5
0.0
0.5
1.0
1.5
2.0
2.5
QE1 QE2 Operation Twist QE3 TaperTreasuries
Mortgage Backed Securities
Total Monthly Asset Purchases (Treasury + Mortgage Backed Securities)
Billions
−100
−50
0
50
100
150
200
−100
−50
0
50
100
150
200
Month to date Oct 07: $−0.02
Inflation and Unemployment − Relative to Targets
Percent
0
2
4
6
8
10
0
2
4
6
8
10
Target Unemployment 6.5%
Target Inflation 2%
U.S. 10 Year and 3 Month Treasury Constant Maturity Yields
Percent
0
1
2
3
4
5
0
1
2
3
4
5
2008 2009 2010 2011 2012 2013 2014 2015
Short Term Rates:
Once at zero, Fed moved to QE
Long Term Rates:
Moving up in anticipation of Taper?
www.lairdresearch.com October 14, 2015 Page 11
12. Exchange Rates
10 Week Moving Average CAD Exchange Rates
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
0.620.710.810.901.001.09
USA/CAD
0.550.610.660.720.770.82
Euro/CAD
59.1674.7190.26105.81121.36136.91
Japan/CAD
0.380.440.490.550.610.67
U.K./CAD
0.591.101.602.112.613.12
Brazil/CAD
CAD Appreciating
CAD Depreciating
Change in F/X: Sep 1 2015 to Oct 9 2015
(Trade Weighted Currency Index of USD Trading Partners)
−3.0%
−1.5%
1.5%
3.0%
Euro
0.4%
UK
1.4%
Japan
1.6%
South Korea
−1.7%
China
1.0%
India
−1.2%
Brazil
3.0%
Mexico
−1.5%
Canada
−0.5%
USA
−1.2%
Country vs. Average
Appreciating
Depreciating
% Change over 3 months vs. Canada
<−10.0% −8.0% −6.0% −4.0% −2.0% 0.0% 2.0% 4.0% 6.0% 8.0% >10.0%
CAD depreciatingCAD appreciating
ARG
−0.6%
AUS
0.8%
BRA
−14.7%
CHN
−1.3%
IND
−0.5%
RUS
−7.6%
USA
2.4%
EUR
5.1%
JPY
5.8%
KRW
0.0%
MXN
−2.6%
ZAR
−4.9%
www.lairdresearch.com October 14, 2015 Page 12
13. US Banking Indicators
The banking and finance industry is a key indicator of the health
of the US economy. It provides crucial liquidity to the economy in the
form of credit, and the breakdown of that system is one of the exac-
erbating factors of the 2008 recession. Key figures to track are the
Net Interest Margins which determine profitability (ie. the difference
between what a bank pays to depositors versus what the bank is paid
by creditors), along with levels of non-performing loans (i.e. loan loss
reserves and actual deliquency rates).
US Banks Net Interest Margin
Percent
3.03.54.04.5
median: 3.94
2015 Q2: 2.97
Repos Outstanding with Fed. Reserve
BillionsofDollars
0200400600
median: 56.56
Oct 2015: 282.68
Bank ROE − Assets between $300M−$1B
Percent
051015
median: 12.82
2015 Q2: 9.85
Consumer Credit Outstanding
%YearlyChange
−505101520
median: 7.61
Aug 2015: 6.78
Total Business Loans
%YearlyChange
−2001020 median: 8.60
Sep 2015: 10.64
US Nonperforming Loans
Percent
12345
median: 2.19
2015 Q2: 1.69
St. Louis Financial Stress Index
Index
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
0246
median: 0.087
Oct 2015: −0.55
Commercial Paper Outstanding
TrillionsofDollars
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
1.01.41.82.2
median: 1.34
Oct 2015: 1.04
Residential Morgage Delinquency Rate
Percent
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
246810
median: 2.32
2015 Q2: 5.77
www.lairdresearch.com October 14, 2015 Page 13
14. US Employment Indicators
Unemployment rates are considered the “single best indicator of
current labour conditions” by the Fed. The pace of payroll growth is
highly correlated with a number of economic indicators.Payroll changes
are another way to track the change in unemployment rate.
Unemployment only captures the percentage of people who are in
the labour market who don’t currently have a job - another measure
is what percentage of the whole population wants a job (employed or
not) - this is the Participation Rate.
The Beveridge Curve measures labour market efficiency by looking
at the relationship between job openings and the unemployment rate.
The curve slopes downward reflecting that higher rates of unemploy-
ment occur coincidentally with lower levels of job vacancies.
Unemployment Rate
Percent
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
median: 6.10
Sep 2015: 5.10
4
5
6
7
8
9
10
11
4
5
6
7
8
9
10
11
Percent
4 5 6 7 8 9 10
2.02.53.03.54.0
Beveridge Curve (Unemployment vs. Job Openings)
Unemployment Rate (%)
JobOpenings(%totalEmployment)
Dec 2000 − Dec 2008
Jan 2009 − Jun 2015
Jul 2015
Participation Rate
Percent
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
6364656667
median: 66.00
Sep 2015: 62.40
Total Nonfarm Payroll Change
MonthlyChange(000s)
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
−5000500
median: 164.00
Sep 2015: 142.00
www.lairdresearch.com October 14, 2015 Page 14
15. There are a number of other ways to measure the health of employ-
ment. The U6 Rate includes people who are part time that want a
full-time job - they are employed but under-utilitized. Temporary help
demand is another indicator of labour market tightness or slack.
The large chart shows changes in private industry employment lev-
els over the past year, versus how well those job segments typically pay.
Lots of hiring in low paying jobs at the expense of higher paying jobs
is generally bad, though perhaps not unsurprising in a recovery.
Median Duration of Unemployment
Weeks
510152025
median: 8.70
Sep 2015: 11.40
(U6) Unemployed + PT + Marginally Attached
Percent
810121416
median: 9.80
Sep 2015: 10.00
4−week moving average of Initial Claims
Jan1995=100
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
50100150200
median: 107.53
Oct 2015: 82.24
Unemployed over 27 weeks
MillionsofPersons
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
01234567
median: 0.79
Sep 2015: 2.06
Services: Temp Help
MillionsofPersons
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
1.52.02.5
median: 2.25
Sep 2015: 2.91
−200 0 200 400 600
15
20
25
30
35
40
Annual Change in Employment Levels (000s of Workers)
Averagewages($/hour)
Private Industry Employment Change (Sep 2014 − Sep 2015)
Construction
Durable Goods
Education
Financial Activities
Health Services
Information
Leisure and Hospitality
Manufacturing
Mining and Logging
Nondurable Goods
Other Services
Professional &
Business Services
Retail Trade
Transportation
Utilities
Wholesale Trade
Circle size relative to total employees in industry
www.lairdresearch.com October 14, 2015 Page 15
16. US Business Activity Indicators
Business activity is split between manufacturing activity and non-
manufacturing activity. We are focusing on forward looking business
indicators like new order and inventory levels to give a sense of the
current business environment.
Manufacturing Sector: Real Output
YoYPercentChange
−1001020
median: 9.41
2015 Q2: 6.38
ISM Manufacturing − PMI
Index
3040506070
Sep 2015: 50.20
manufac. expanding
manufac. contracting
ISM Manufacturing: New Orders Index
Index
304050607080
Sep 2015: 50.10
Increase in new orders
Decrease in new orders
Non−Manufac. New Orders: Capital Goods
BillionsofDollars
40506070
median: 57.79
Aug 2015: 69.31
Average Weekly Hours: Manufacturing
Hours
3940414243
median: 41.10
Sep 2015: 41.60
Industrial Production: Manufacturing
YoYPercentChange
−15−50510
median: 3.12
Aug 2015: 1.65
Total Business: Inventories to Sales Ratio
Ratio
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
1.11.21.31.41.51.6
median: 1.36
Jul 2015: 1.36
Chicago Fed: Sales, Orders & Inventory
Index
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
−0.50.00.5
Aug 2015: −0.03
Above ave growth
Below ave growth
ISM Non−Manufacturing Bus. Activity Index
Index
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
35455565
Sep 2015: 60.20
Growth
Contraction
www.lairdresearch.com October 14, 2015 Page 16
17. US Consumption Indicators
Variations in consumer activity are a leading indicator of the
strength of the economy. We track consumer sentiment (their expec-
tations about the future), consumer loan activity (indicator of new
purchase activity), and new orders and sales of consumer goods.
U. Michigan: Consumer Sentiment
Index1966Q1=100
5060708090110
median: 88.40
Sep 2015: 87.20
Consumer Loans (All banks)
YoY%Change
−10010203040
median: 7.61
Sep 2015: 4.82
Accounting
Change
Deliquency Rate on Consumer Loans
Percent
2.03.04.0
median: 3.46
2015 Q2: 1.96
New Orders: Durable Consumer Goods
YoY%Change
−20020
median: 4.11
Aug 2015: 7.38
New Orders: Non−durable Consumer Goods
YoY%Change
−2001020
median: 4.21
Aug 2015: −12.40
Personal Consumption & Housing Index
Index
−0.40.00.20.4
median: 0.02
Aug 2015: −0.08above ave growth
below ave growth
Light Cars and Trucks Sales
MillionsofUnits
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
10121416182022
median: 14.82
Aug 2015: 17.73
Personal Saving Rate
Percent
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
246810
median: 5.55
Aug 2015: 4.60
Real Retail and Food Services Sales
YoY%Change
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
−10−505
median: 2.47
Aug 2015: 1.94
www.lairdresearch.com October 14, 2015 Page 17
18. US Housing
Housing construction is only about 5-8% of the US economy, how-
ever a house is typically the largest asset owned by a household. Since
personal consumption is about 70% of the US economy and house val-
ues directly impact household wealth, housing is an important indicator
in the health of the overall economy. In particular, housing investment
was an important driver of the economy getting out of the last few
recessions (though not this one so far). Here we track housing prices
and especially indicators which show the current state of the housing
market.
15 20 25 30 35
150200250300
Personal Income vs. Housing Prices (Inflation adjusted values)
NewHomePrice(000's)
Disposable Income Per Capita (000's)
Aug 2015
r2
: 89.4%
Range: Jan 1959 − Aug 2015
Blue dots > +5% change in next year
Red dots < −5% change in next year
New Housing Units Permits Authorized
MillionsofUnits
0.51.01.52.02.5
median: 1.35
Aug 2015: 1.16
New Home Median Sale Price
SalePrice$000's
100150200250300
Aug 2015: 292.70
Homeowner's Equity Level
Percent
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
4050607080
median: 66.50
2015 Q2: 56.30
New Homes: Median Months on the Market
Months
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
468101214
median: 4.95
Aug 2015: 3.70
US Monthly Supply of Homes
MonthsSupply
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
4681012
median: 5.90
Aug 2015: 4.70
www.lairdresearch.com October 14, 2015 Page 18
19. US Housing - FHFA Quarterly Index
The Federal Housing Finance Agency provides a quarterly survey
on house prices, based on sales prices and appraisal data. This gener-
ates a housing index for 355 municipal areas in the US from 1979 to
present. We have provided an alternative view of this data looking at
the change in prices from the peak in the 2007 time frame.
The goal is to provide a sense of where the housing markets are
weak versus strong.The colours represent gain or losses since the start
of the housing crisis (defined as the maximum price between 2007-2009
for each city). The circled dots are the cities in the survey, while the
background colours are interpolated from these points using a loess
smoother.
Change from 2007 Peak − Q2 2015
−50%
−40%
−30%
−20%
−10%
0%
10%
20%
30%
40%
50%
Today's Home Prices
Percentage Change from 2007−2009 Peak
Frequency
−75% −50% −25% 0% 25% 50% 75%
Year over Year Change − Q2 2015
−10%
−8%
−6%
−4%
−2%
0%
2%
4%
6%
8%
10%
YoY Change in this quarter
YoY Percent Change
Frequency
−15% −10% −5% 0% 5% 10% 15%
www.lairdresearch.com October 14, 2015 Page 19
20. Global Business Indicators
Global Manufacturing PMI Reports
The Purchasing Managers’ Index (PMI) is an indicator reflecting
purchasing managers’ acquisition of goods and services. An index read-
ing of 50.0 means that business conditions are unchanged, a number
over 50.0 indicates an improvement while anything below 50.0 suggests
a decline. The further away from 50.0 the index is, the stronger the
change over the month. The chart at the bottom shows a moving av-
erage of a number of PMI’s, along with standard deviation bands to
show a global average.
Global M−PMI − September 2015
<40.0 42.0 44.0 46.0 48.0 50.0 52.0 54.0 56.0 58.0 >60.0
Steady ExpandingContracting
Eurozone
52.0
Global PMI
50.6
TWN
46.9MEX
52.1
KOR
49.2
JPN
51.0
VNM
49.5
IDN
47.4
ZAF
47.9
AUS
52.1
BRA
47.0
CAN
48.6
CHN
47.2
IND
51.2
RUS
49.1
SAU
56.5
USA
53.1
Global M−PMI Monthly Change
<−5.0 −4.0 −3.0 −2.0 −1.0 0.0 1.0 2.0 3.0 4.0 >5.0
PMI Change ImprovingDeteriorating
Eurozone
−0.3
Global PMI
−0.1
TWN
0.8MEX
−0.3
KOR
1.3
JPN
−0.7
VNM
−1.8
IDN
−1.0
ZAF
−1.4
AUS
0.4
BRA
1.2
CAN
−0.8
CHN
−0.1
IND
−1.1
RUS
1.2
SAU
−2.2
USA
0.1
Purchase Managers Index (Manufacturing) − China, Japan, USA, Canada, France, Germany, Italy, UK, Australia
04
05
06
07
08
09
10
11
12
13
14
15
3040506070
3040506070
Business Conditions Contracting
Business Conditions Expanding
www.lairdresearch.com October 14, 2015 Page 20
22. OECD International Trade Data
The OECD calculates import and export values for member coun-
tries. Figures are seasonally adjusted and measured in billions of US
dollars. Red lines indicate exports, while blue lines indicate imports.
Green lines indicate the zero level.
The top part of the graph shows the changes in exports and imports
on a year-over-year basis, while the bottom part shows the difference
between exports and imports for that given month (i.e. the trade bal-
ance)
China (Mar 2015)
YoYChange
−40
−20
0
20
40
60
80
Balance
08
09
10
11
12
13
14
15
0
20
40
60
80
100
Germany (Feb 2015)
YoYChange
−40
−20
0
20
Balance
08
09
10
11
12
13
14
15
0
5
10
15
20
25
30
Japan (Feb 2015)
YoYChange
−30
−20
−10
0
10
20
Balance
08
09
10
11
12
13
14
15
−15
−10
−5
0
5
10
South Korea (Feb 2015)
YoYChange
−15
−10
−5
0
5
10
15
Balance
08
09
10
11
12
13
14
15
−4
−2
0
2
4
6
8
10
www.lairdresearch.com October 14, 2015 Page 22
24. 6.6 6.8 7.0 7.2 7.4 7.6
1.31.41.51.61.71.81.9
Beveridge Curve (Mar 2011 − Jun 2015)
as.numeric(can.bev$ui.rate)
as.numeric(can.bev$vacancies)
Mar 2011 − Dec 2012
Jan 2013 − May 2015
Jun 2015
Unemployment Rate
JobVacancyrate(Industrial)
Ownership/Rental Price Ratio
RatioofAccomodationOwnership/RentRatio
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
90100110120130140150
Calgary
Montreal
Vancouver
Toronto
Note: Using prices relative to 2002 as base year
Ownership relatively more
expensive vs 2002
Rent relatively more expensive vs 2002
Unemployment Rate (SA)
Percent
345678910
Canada 7.1%
Alberta 6.5%
Ontario 6.9%
Debt Service Ratios (SA)
Percent
246810
Total Debt: 6.4%
Mortgage: 3.3%
Consumer Debt: 6.1%
Housing Starts and Building Permits (smoothed)
YoYPercentChange
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
−40−2002040
Permits
Starts
www.lairdresearch.com October 14, 2015 Page 24
25. European Indicators
Unemployment Rates
Percentage
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
051015202530
Business Employment Expectations
Index
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
−40−20010
Industrial Orderbook Levels
Index
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
−60−40−20020
Country Employment
Expect.
Unempl.
(%)
Bond Yields
(%)
Retail
Turnover
Manufacturing
Turnover
Inflation
(YoY %)
Industry
Orderbook
PMI
Series Dates Sep 2015 Sep 2015 Sep 2015 Aug 2015 Aug 2015 Aug 2015 Sep 2015 Sep 2015
France -7.7 I 10.8 I 1.01 K 105.7 J 110.4 J 0.1 J -15.1 J 50.6 I
Germany -1.1 K 4.5 J 0.65 I NA 114.4 J 0.1 K -9.6 I 52.3 J
United Kingdom 1.6 J 5.5 J 1.85 J 112.3 J NA 0.0 J -10.5 J 51.5 J
Italy -1.0 J 11.9 J 1.92 I 101.2 I NA 0.4 I -11.6 I 52.7 J
Greece -16.4 I 25.0 K 8.54 J 69.6 J NA -0.4 I -47.2 J 43.3 I
Spain 7.6 I 22.2 J 2.02 I NA NA -0.5 J -3.3 I 51.7 J
Eurozone (EU28) -1.2 J 9.5 K 1.26 J 106.4 J 111.1 J 0.0 J -12.2 J NA
www.lairdresearch.com October 14, 2015 Page 25
26. Government Bond YieldsLongTermYields%
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
0246810
Economic Sentiment
Index
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
60708090110130
Consumer Confidence
Index
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
−100−60−20020
Inflation (Harmonized Prices)
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
median: 1.90
Aug 2015: 0.10−1
0
1
2
3
4
5
6
7
Euro Area
US
Harmonized Inflation: Jul 2015
AUT
0.9%
BGR
−0.8%
DEU
0.1%
ESP
−0.5%
FIN
−0.2%
FRA
0.1%
GBR
0.0%
GRC
−0.4%
HRV
−0.1%
HUN
0.1%
IRL
0.2%
ISL
1.1%
ITA
0.4%
NOR
1.8%
POL
−0.4%
ROU
−1.7%
SWE
0.6%
<−1.0%0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% >7.0%
YoY % Change in Prices
PMI: September 2015
<40.042.0 44.0 46.0 48.0 50.0 52.0 54.0 56.0 58.0>60.0
Steady ExpandingContracting
BRA
47.0
CAN
48.6
DEU
52.3
ESP
51.7
FRA
50.6
GBR
51.5
GRC
43.3
IRL
53.8
ITA
52.7
MEX
52.1
POL
50.9
SAU
56.5
TUR
48.8
USA
53.1
RUS
49.1
PMI Change: Aug − Sep
<−5.0−4.0 −3.0 −2.0 −1.0 0.0 1.0 2.0 3.0 4.0 >5.0
PMI Change ImprovingDeteriorating
CAN
−0.8
DEU
−1.0
ESP
−1.5
FRA
2.3
GBR
−0.1
GRC
4.2
IRL
0.2
ITA
−1.1
POL
−0.2
TUR
−0.5
USA
0.1
RUS
1.2
www.lairdresearch.com October 14, 2015 Page 26
27. Chinese Indicators
Tracking the Chinese economy is a tricky. As reported in the Fi-
nancial Times, Premier Li Keqiang confided to US officials in 2007 that
gross domestic product was “man made” and “for reference only”. In-
stead, he suggested that it was much more useful to focus on three alter-
native indicators: electricity consumption, rail cargo volumes and bank
lending (still tracking down that last one). We also include the PMI
- which is an official version put out by the Chinese government and
differs slightly from an HSBC version. Finally we include the Shanghai
Composite Index as a measure of stock performance.
Manufacturing PMI
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
4045505560
Sep 2015: 47.20
Shanghai Composite Index
IndexValue(MonthlyHigh/Low)
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
0100030005000
Oct 2015: 3287.66
Electricity Generated
100MillionKWH(logscale)
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
1000200030005000
Aug 2015: 5155.00
Electricity Generated
Long Term Trend
Short Term Average
Consumer Confidence Index
Index
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
98100102104106108110
median: 103.85
Aug 2015: 104.00
Exports
YoYPercentChange
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
−20020406080
median: 18.40
Sep 2015: −3.70
Retail Sales Growth
YoYPercentChange
99
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
101520
median: 13.00
Aug 2015: 10.80
www.lairdresearch.com October 14, 2015 Page 27
28. Global Climate Change
Temperature and precipitation data are taken from the US National
Climatic Data Center and presented as the average monthly anomaly
from the previous 6 months. Anomalies are defined as the difference
from the average value over the period from 1971-2000 for the tem-
perature map and over the 20th century for the global temparature
chart.
Average Temperature Anomalies from Mar 2015 - Aug 2015
<−4.0 −3.0 −2.0 −1.0 0.0 1.0 2.0 3.0 >4.0
Anomalies in Celcius WarmerCooler Anomalies in Celcius
−4 −2 0 2 4
Historic Global Temperature Deviations
DegreesCelciusDeviations
−0.50.00.5
Aug 2015: 0.88
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020
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