Updated for 2021Q4In the last five years, banking financials have improved dramatically based on IDC Financial Publishing‘s (IDC’s) NOPAT ROE rising from 12.1% in the fourth quarter of 2016 to a peak of 15.9% in the fourth quarter of 2021. During the same period, reported stockholders ROE increased from 12.7%…
Summary of Inflation The rapid pickup in inflation boils down in large part to the mismatch between supply and demand. With the help of a massive government stimulus, a surge in household purchases strained factories and lengthened global supply chains. Current constraints of U.S. producers trying to ramp up production were…
Credit unions have grown to become a major factor in the U.S. economy, with assets that have grown at nearly twice the pace of banks over the past decade. Credit unions are owned by their members and are designed to offer lower borrowing costs and higher deposit rates. In addition,…
The cycle low in Treasury Inflation Protected 5- and 10-Year Yields (TIPS) is due to several reasons. The Russian invasion of Ukraine caused volatility in the markets, particularly with 5- and 10-year TIPS yields approaching cycle lows in early March 2022. These yields previously reached lows in mid-November 2021, which,…
The Link Between Bonds and Stocks The link between the bond and stock markets is the performance of high yield compared to investment grade bonds. (High yield bonds are a proxy for epicenter or value stocks.) The flight to safety due to the advent of COVID resulted in the High Yield…
