Another round of data and charts that caught my eye. Please let me know what you think of the data and what else you think is important.
US Equities
The title of this video from CNBC focuses on the $24 billion of inflows into US Equity ETFs this year but this is only half the story.
- Net insider selling is huge this year (the actual stat is the net insider buying is down 70% year over year).
- Announced corporate buybacks are down over 66% this year.
- This selling is off-set by the inflows into ETFs so far this year.
The overall question/takeaway – Will the economy improve enough to keep the money flowing into equities?
US Equities continued…
Let’s mention complacency again. The S&P is currently seeing the least short interest ever recorded. Yes you read that right, EVER!
No wonder stocks continue to move higher but when I see extremes I like to go the other way…
Central Bank Data
As much as I think the Fed and other central banks are slowing losing their impact on markets this chart shows that they still have more than a little influence.
As I have stated a number of times this year, we are seeing a change in policy of central banks around the world. If they actually start following the Fed and we start to see QE programs end and rates start to rise we are in a very different financial world. This is not all going to happen tomorrow but this year could be huge for shifting policy.
ECB Data
Who says a chart can not go straight up… Just look at the ECB’s balance sheet!
Now this might start to see this change if the ECB tappers by 25%. Or it might not…
#ECB keeps balance sheet expanding despite CPI goal hit & allegations of currency manipulation. Total assets rose to €3.8trn, 36% of EZ GDP. pic.twitter.com/f1tF7cO82o
— Holger Zschaepitz (@Schuldensuehner) March 14, 2017